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st: Endogeneity in a Panel Setting (Fixed Effects)


From   "Asiedu, Elizabeth" <[email protected]>
To   "'[email protected]'" <[email protected]>
Subject   st: Endogeneity in a Panel Setting (Fixed Effects)
Date   Tue, 27 May 2003 09:40:36 -0500

Dear all,

I have an unbalanced panel of 91 countries over the period 1984-2000 (1024
observations) and I'm using the fixed effects estimation, because it failed
the Hausman test. I have two questions:

1. How do I test whether there is endogeneity?

2. I can't reliable instruments for my endogenous variable. How do I resolve
the problem of endogeneity if it exists?


Thank you.


Elizabeth Asiedu

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