Dear all,
I will please like to find out a few things. I use OLS in my analysis and to address endogeneity issues I employ Instrumental variable method. First stage results were insignificant and instruments were weak ( below the thumbs rule value of 10) endogeneity test reveals there’s no endogeneity issue.
My question is with weak instruments and insignificant results in the first stage ( meaning instrument is not correlated with endogenous variable) can the result from endogeneity test be used. I.e can result from test of endogeneity be trusted? And can I conclude the paper by stating that we find no endogeneity issues. Thanks.
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