Suppose i have regression model as-

gdp = a+ bx+ c(z/gdp)+ e

Here x is a vector of explanatory variables. z/gdp is one of my control variables. In this regression equation, GDP lies in both side and my data is in Time Series. There is obvious issue is estimating this equation. How to rectify it for estimation ? Can i use one period lag of z/gdp to overcome this issue. ?

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