i am working on household panel data of three waves. there is endogeneity in the model. plz suggest me the suitable regression technique in my scenerios.
No, I know there is endogeneity in my model. I want to know about the best regression methodology in my case
And I want to know what you think is the underlying cause of the endogeneity. As always it is theory that will help, not technique per se.
If you are analysing repeated measures with occasions at level 1 nested in households at level 2 and you are worried about endogeneity in the from of omitted variable bias of of unobserved household (unchanging) characteristics have a look at Article Fixed and Random effects models: making an informed choice
Other recommendations could be made if the endogeneity is due to measurement error or simultaneity.
Qurra tul ain Once there is a endogeneity in your model, the best estimator requiered in the literature is GMM or 2SLS. If you want to use GMM make sure you've a good instruments. And look at carefuly hansen test and the P-values. If there is a proliferation of instruments it is a problem You may better to use 2SLS.
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