Problem
Refit the constant elasticity form of the model as a dynamic model, including L. Packps as a repressor. Use the two step robust DPD estimator of xtabad2 with lpackpc as a GMM instrument and year. L. agars as IV instruments. Do the results support the dynamic formulation of the model? Is the model more in line with economic theory than the static form? Is it adequate for the test of over identifying restrictions and second order serial correlations?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.