Dear Statalist,

Whats the best way to decide whether I have endogeneity issue or not in my fixed effect model? In IV regression, I came to conclusion that there is no endogeneity issue based the tests like estat endogenous, but I cannot find similar tests for FE model.

On the other hand, I have tried many different instruments for my 'possibly endogenous' variable in fixed effect model, but I always end up rejecting the null of Sargan statistic test which casts doubt on the validity of the instruments.

Thank you.