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Published on Monday, May 23, 2016 | Updated on Tuesday, April 16, 2019

Document number 16/10

Long and short-run components in explanatory variables and different panel-data estimates

We investigate the idea that when we separate an explanatory variable into its “between” and “within” variations we could be roughly decomposing it into a structural (long-term) and a cyclical component respectively, and this could translate into different Between and Within estimates in panel data.