I have data on 25 countries for about 35 years. I want to estimate a POLS as I am not looking for a causal interpretation but just sttistical correlation between two phenomena. That's why I will not go for fixed effects.

1) Do you think that can be wrong?

Since the dependent variable is quite persistent,

2) does it make sense to estimate a dynamic pooled ols with lagged dependent variable? Or this can be omitted since I am not looking for causality?


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.