if i have to do the mode

Health = f (income, environment, social factor) and i know that enironment = f ( income, other factors)

so health = f ( income , environment ( income, other factor), social factor)

what is the best estimation method that I should do ? why?

I am thinking about 2SLS ..but ..the problem is that i couldn't find reason to explain their endogeneity

please help, and discuss . thank you

4/26/2008 5:40:50 PM

before you use 2SLS as your final model, just do a Hausman test for endogeneity.

5/3/2008 11:01:58 PM