The function estimates a linear dynamic panel data model of the form
$$y_{i,t} = y_{i,t-1} \rho_1 + a_i + \varepsilon_{i,t}$$
where \(y_{i,t-1}\) is the lagged dependent variable, \(\rho_1\) is
the lag parameter, \(a_i\) is an unobserved individual specific effect,
and \(\varepsilon_{i,t}\) is an idiosyncratic remainder component. The
model structure accounts for unobserved individual specific heterogeneity
and dynamics. Note that more general lag structures and further covariates
are beyond the scope of the current implementation in pdynmc.
More details on the FDLS estimator and its properties are provided
in HanPhi2010;textualpdynmc.