I am working on unbalanced panel data. I needed to add Lags of the dependent and independent variables. Want to know whether such model can be described as dynamic model. If not what will I called such model?
I recommend the AB estimator: https://en.wikipedia.org/wiki/Arellano–Bond_estimator
Before applying a model, it is also recommended to perform EDA. Please let me recommend this work introducing a visual framework for panel data: Poster A Visual Framework for Longitudinal and Panel Studies (with ...
Yes - a dynamic panel data model becomes dynamic when it contains at least one lagged dependent variables – since when lagged dependent variables appear as explanatory variables, strict exogeneity of the regressors no longer holds.