multiple linear regression with lagged variable

B_Em

New Member
#1
Hello everyone,
I'm doing a research about foreign aid effectiveness, where I'd like to see the effect of foreign aid, population growth and government effectiveness on human development index.
All the variables are from year 2019, except the foreign aid where the data is from 2017 (assuming we can see the effect of aid on development in at least 2 years)


HDI2019 = b0 + b1AID2017 + b2POPgrowth2019 + b3GE2019.

Is it ok to run the multiple regression like this or do we have to use another method?

Thanks a lot for your help.