https://communities.sas.com/t5/Statistical-Procedures/Problem-of-endogeneity-in-panel-regression-TSCSREG/m-p/62577#M2935 Dear All,<BR /> <BR /> I'm using the TSCSREG procedure in SAS to estimate a fixed/random effects model of the form:<BR /> <BR /> y(t+1) = b0 + b1*x1(t) + ... + e(t)<BR /> <BR /> The problem is that the some of the IVs are in fact, dependent on a) each other; and b) on the dependent variable. That is, e.g.,<BR /> <BR /> xi(t)=f( xj(t) ) (a)<BR /> <BR /> xi(t)=f( y(t) ) (b)<BR /> <BR /> Is there a way to control for the endogeneity so that biased estimates will not occur? How is this done in TSCSREG or other SAS procedures (e.g. MIXED)?<BR /> <BR /> Or do I have to find alternative IVs so as to circumvent the problem?<BR /> <BR /> Thank you very much! Wed, 11 Aug 2010 09:19:04 GMT deleted_user 2010-08-11T09:19:04Z https://communities.sas.com/t5/Statistical-Procedures/Problem-of-endogeneity-in-panel-regression-TSCSREG/m-p/62577#M2935 Dear All,<BR /> <BR /> I'm using the TSCSREG procedure in SAS to estimate a fixed/random effects model of the form:<BR /> <BR /> y(t+1) = b0 + b1*x1(t) + ... + e(t)<BR /> <BR /> The problem is that the some of the IVs are in fact, dependent on a) each other; and b) on the dependent variable. That is, e.g.,<BR /> <BR /> xi(t)=f( xj(t) ) (a)<BR /> <BR /> xi(t)=f( y(t) ) (b)<BR /> <BR /> Is there a way to control for the endogeneity so that biased estimates will not occur? How is this done in TSCSREG or other SAS procedures (e.g. MIXED)?<BR /> <BR /> Or do I have to find alternative IVs so as to circumvent the problem?<BR /> <BR /> Thank you very much! Wed, 11 Aug 2010 09:19:04 GMT https://communities.sas.com/t5/Statistical-Procedures/Problem-of-endogeneity-in-panel-regression-TSCSREG/m-p/62577#M2935 deleted_user 2010-08-11T09:19:04Z