Endogeneity test for panel data (re)

[Floris Pijl]

Hi all,

I'm running the following regression in STATA 13.0:

xtreg roa1w3 fam_man ln_assets1w3 solvency_debt1w3 sales_growth1w3 cooperative d_2014 d_2016 d_2017 sector_a sector_b sector_f sector_g sector_h sector_j sector_n sector_m, re vce(robust)

I would like to test for the possibility of endogeneity, but having difficulties finding/understanding the right way for panel data random effects either Googling or on this forum. Is there anyone that can help?

Thanks

[Carlo Lazzaro]

Floris:
welcome to this forum.
The following thread may be interesting: https://www.statalist.org/forums/for...est-panel-data.

[Floris Pijl]

Floris:
welcome to this forum.
The following thread may be interesting: https://www.statalist.org/forums/for...est-panel-data.

Carlo, thank you for your response. I did read the thread beforehand but find the methodology written in the book hard to understand. Is there someone that might have some time to briefly walk me through the steps in STATA?

[Carlo Lazzaro]

Floris:
I'm afraid there are no shortcuts, but achieving a good knowledge of this tricky matter.
Jeff's handbook is surely a must, but I would start off from -ivreg- and -xtivreg- entries in Stata -pdf manual.