• I have Panel Data (T=41, N=16, T>N)- 16 banks with 41 quarters, Obs=656
  • Out of five explanatory variables, 3 are stationary at the level I(0) and 2 are stationary at the 1st Diff I(1) (NPL-R, and ROA-R)
  • Data have Heteroscadascacity and Serial correlation
  • I want to try both "dynamic" and "static" models.

    1- How could I use fixed effects in term of above-stated info i.e. (Mixture of I(0) and I(1))

    2- What kind of dynamic model would be appropriate?

    Thank you

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