test to check simultaneity bias in equations

[adeeba sarwar]

i have three equations model. i want to apply panel 3sls on it but before this i have to check whether there exist simultaneity bias or not ? is there any test or any way to check simultaneity bias in Panel?

[Phil Bromiley]

If you estimate reg3 (3SLS), it will give you parameters that test whether the endogenous variables really influence outcomes in specific equations.
You can also run it equation by equation using ivreg and then use estat endogenous for the test.

[adeeba sarwar]

Reg3 command is for time series data . My problem is that My dataset is Panel. I know how to check simultaneity in time series but want to ask about panel data

[Phil Bromiley]

If it is fixed effects you want, you can add them to reg3 with i.panel. Otherwise, you can look at xtivreg or user written xtivreg2. They are consistent generally even though not as efficient as full 3sls (if the models are all correctly specified).

[adeeba sarwar]

reg3 is allowed to i.panel option