Hausman Test for Endogeniety
A statistical test to check for correlation between a suspected endogenous explanatory variable and the error term. The test works by comparing the estimates obtained from ordinary least squares (OLS) and twostage least squares (2SLS) regression equations. The test requires at least one variable that is causally related to the suspected endogenous explanatory variable, but otherwise unrelated to the dependent variable.
Wooldridge, J.M. 2003. Introductory Econometrics, Mason, OH: Thomas SouthWestern.
Kennedy, P. 1998. A Guide to Econometrics, Cambridge, MA: The MIT Press.
