When we use a lagged dependent variable in our regression, R 2 is generally much higher than
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When we use a lagged dependent variable in our regression, R2 is generally much higher than when such a variable is not included. Can you think of any reasons why?
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Answer Including a lagged dependent variable LDV in a regression model can often lead to a higher coefficient of determination Rsquared compared to wh...View the full answer
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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