Endogeneity lecture 1: What is an endogeneity problem?

[@FixcyJustin-wm7id]

Thank you this tutorial is very helpful as a
Business student.

[@muskduh]

Thanks so much

[@MirGlobalAcademy]

nice

[@TheBiggestOne111]

Guys, I need your advice .. my supervisor misled me with writing my master's thesis. First, he says that I need to run the OLS regression and then to check the Hausman specification test for endogeneity and next do the IV. I followed his advice, run the OLS, then checked the endogeneity, found that it existed, and then did the IV regression, and then compared the results with OLS regression. I wrote and sent the paper to him to check. However, he commented that it is methodologically wrong approach and I needed to do everything vice verse - first to check the Hausman specification test for endogeneity and run IV regression, then OLS. I am in a deadlock.. cannot understand what really he wants to see? What is the step by step logic/idea with endogeneity problem? What has to be done first, second, third... Please, advise...

[@Usman-xh9sr]

Depends on how you compared the IV with the OLS. What things did you comment on when you compared both?