Endogenous and Exogenous variables

[EF00]

I have two OLS equations for the dependent variables X and Y. In the equation for X, Y is one of the explanatory variables, and in the equation for Y, X is one of the explanatory variables. Both equations pass the tests for heteroscedasticity and autocorrelation. Can I keep these two equations in my model (model_base within model_solve)?

Thanks!!

[startz]

Autocorrelation and heteroskedasticity have nothing to do with endogeneity.

You almost certainly cannot estimate both equations by OLS.

[EF00]

Thank you for your clarification. Do you have any recommendations (alternative methods like IV) ?

[startz]

IV would make sense.