How to implement lag in R using felm function

Question

I have to implement a lag into my regression analysis (felm function) and I don´t quite know how to implement this.

The formula is

(felm(Four.factor.alpha ~ Age + Turnover + Expenses + Size + Team |code + yy|0|WFICN + yy, data = PData_Risk_Perf))

I want to lag the Age, Turnover as well as the Expenses and the size. Does somebody know how I can implement a lag here now ?

Im stuck with this problem and hope someone can help me.

Thank you very much.

Answer 1

This sounds like a methodoligical questions that should go to Cross Validated as you're asking in the comment "how [to] select the variables which [to] "lag"".

As @Bill mentioned, you need theoretical expectations to answer this questions. Do you expect the turnover of one year (I think that is the unit you are using?) to not influence your dependent variable "immediately" (in the same year) but later (one, two, x years later, depending on how many units you use for the lag)? The same goes for all variables. Of course, some lags are not "logical". Age should be perfectly correlated to time and if you have variables that are constants (maybe size?), a lag will not change anything either.