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Partial adjustment model

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Partial adjustment model

1. I am trying to find way to apply partial adjustment model. Can it work for two values lev and lag(lev) as defined in equation 3 of the attached file. How -lambda- and -beta- values could be estimated?
2. Is there anyway which lead me to estimate equation 5 for each firm for each year. Sorry I don't know much in this regard. (Previously I have learned only OLS estimates for overall sample.)


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