Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher than when it is not included What are the reasons for this observation ...

The lagged term represents t ...

Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher

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Whenever the lagged dependent variable appears as an explanatory variable, the R² is usually much higher than when it is not included. What are the reasons for this observation?

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: May 29, 2018 04:16 AM

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Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher than when it is not included. What are the reasons for this observation?
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Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher

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Basic Econometrics

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