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st: IV in panel
dear all,
i am figuring out wheter using or not IV in a random effect model for my
panel dataset; for fixed effect there tests for overidentification and
endogeneity, but i did not find any for the Random effect model..
have you some ideas on how to proceed?
what i did up to know is to apply standard hausman-type test on the two
models; the RE with IV and the RE without IV and then testing which of the
two is more efficient or consistent with hausman test..is this procedure
correct?
cheers
--
Vincenzo Lombardo
University of Sussex, Dept. of Economics
University of Napoli Parthenope, DSE
12 Canfield Road
BN2 4DN Brighton - UK
tel. (UK):++44(0)7765991711
tel. (ITALY):++393284164302
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