How Do You Handle Endogeneity in Panel Regression Models? or What Are the Best Practices for Fixed Ef

IVs are a pain, but sometimes you gotta get creative. Think outside the box—geographic distance, policy changes, or even weather data can work as instruments.

GMM is powerful but yeah, overkill for small datasets. If you’re in Stata, `xtabond2` is a lifesaver for dynamic panel regression.

Also, this tutorial on IV selection is gold: [link].