I have an unbalanced panel data of 2500 firms from 13 countries for 9 years in which each firm has an average of 4.40 no of observations. Now I run the firm fixed effect regression with Year Year#industrydummy Year#countrydummmy and cluster the standard errors at the firm level.
How can I check the endogeneity for the model I run, and what sort of solution can I have to ensure there is no endogeneity problem?
The problem has become more complex as avg no of observations per group is half per group, and there are approx 120 data patterns in the dataset.
I just wanted to know how I can proceed further to ensure there is no endogeneity problem.
How can I check the endogeneity for the model I run, and what sort of solution can I have to ensure there is no endogeneity problem?
The problem has become more complex as avg no of observations per group is half per group, and there are approx 120 data patterns in the dataset.
I just wanted to know how I can proceed further to ensure there is no endogeneity problem.
