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  • Endogeneity Biases using Shaver Test

    Dear Stata Community

    Statistical background:
    I have collected survey data from a single source at one point in time. To inspect the general robustness of my results and statistically support the causality, I have to control for endogeneity biases.
    To examine endogeneity, I specified an additional model and follow the procedure suggested by *Shaver (2005).


    Model:
    So far so good. My problem is that I want to correlate the error terms but using the Stata SEM drawer does not allow me to correlate the error terms.
    This is what I want to look into:

    Click image for larger version

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    Could you please help me with generating the right Stata code for this model? Thanks so much!
    I am infinitely grateful for any help and comments and would be happy if Stata experts could teach me a bit more about Stata.

    Kind regards,
    Edda



    *Shaver, J. M. (2005). Testing for mediating variables in management research: Concerns, implications, and alternative strategies. Journal of management, 31(3), 330-353.

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