Hello
I am puzzling on how to run the regression that has
the nature of dual casulity within a set of panel
data. Which econometric model shall I use? How to
perform the test with Stata?
For example, we need know the relation between
varaibles A and B. We understand A causes B and B also
causes A. We are estimating the regression relation
A=c+ b* B + Control Variables+ e . However, the
endogenity problem of B has to be taken care of. How
can we do it cleanly?
Your response is appreciated.
William
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