CODEWITHSUNDEEP
rmodelsplm
stuvu
stuvu

Reputation: 11

How to add lag to random effects model using plm package

I have a random effects model in which I model housing prices. Now I'd like to add a lag to the model using the plm package, however I don't know ho to do so. I coded my regression as follows:

 randomHUIS = plm(YHUIS ~ XHUIS, data = panel, index = c("Gemeente", "Jaartal"), model = "random")
 randomAPP = plm(YAPP ~ XAPP, data = panel, index = c("Gemeente", "Jaartal"), model = "random")

Upvotes: 0

Views: 946

Answers (1)

Helix123
Helix123

Reputation: 3677

You could just do one of the following:

1) Put the lag function in the formula:

randomHUIS = plm(YHUIS ~ XHUIS + lag(your_variable_to_be_lagged), data = panel, index = c("Gemeente", "Jaartal"), model = "random")

2) lag the variable in your pdata.frame first (assuming your panel is already a pdata.frame), then put that (already) lagged variable in your formula:

panel$your_var_lag <- lag(panel$your_var) randomHUIS = plm(YHUIS ~ XHUIS + your_var_lag, data = panel, model = "random")

Upvotes: 1

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