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Fourth, we varied the lag length between disbursements and possible start of mortality effects – 1 year in the default analysis – to 2 4 years (Additional file 1: S5).
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The lag length in the final sample varies between 8 years and 16 years (<5 % of the sample observations).
Results from the lag length test suggest that the possible lag lengths lie between one and four.
represents the optimum level of lag length.
We present only the maximum lag length (see Appendix 2).
The choosing of lag length is an important task here.
Up to 40 lags are permitted with a general-to-simple procedure used to select lag length.
We apply the lag selection criteria to choose the lag length, and the result is presented in Table 2.
All five lag length criteria tested indicated 8 lags as the optimal model, so we consider it as the lag for our model estimation for all companies.
To determine the optimal lag length, the Schwarz Bayesian information criterion (SBIC) used to select the lag length for our models with the initial lag length set at k = 1 (k = 4 for two countries).
The Akaike information and Schwarz criteria used for determination of optimal lag length requires that, the lag length with the smallest critical value for both criterions be chosen.
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