Hi All,
I understand Hausamn test is useful to test for endogeneity(though of low power).
In the presence of endogeneity, do panel fixed effect regressions take account this
problem (endogeneity)?. I saying so because I understand from explanations in Grelts Users
Guide that , panel fixed effects regressions are based on the undelying assumption that
variables are correlated with the error term(endogeneity)?. Am I correct in my
intuition?
Thanks