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Thread: estimating target debt ratio

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    estimating target debt ratio

    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 jpeg. any explanation from other sources
    would be appreciated.*
    2. Is there anyway in stata 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 estimation.
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