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Long Run and Short Effects in Static Panel Models

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  • Peter Egger

    (University of Innsbruck)

  • Michael Pfaffermayr

    (University of Innsbruck)

Abstract

For short and fat panels the Mundlak model can be viewed as an approximation of a general dynamic autoregressive distributed lag model. We give an exact interpretation of short run and long effects and provide simulations to assess the quality of the approximation of the long run and short run effects by the parameters of the Mundlak Model.

Suggested Citation

  • Peter Egger & Michael Pfaffermayr, 2002. "Long Run and Short Effects in Static Panel Models," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B6-2, International Conferences on Panel Data.
    • Handle: RePEc:cpd:pd2002:b6-2
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    File URL: http://econpapers.repec.org/cpd/2002/44_Pfaffermayer.pdf
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    References listed on IDEAS

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