When Calculating the TSLS Standard Errors

question 9

Multiple Choice

When calculating the TSLS standard errors

• A)you do not have to worry about heteroskedasticity, since it was eliminated in the first stage
• B)you can use the standard errors reported by OLS estimation of the second stage regression.
• C)the critical values from the standard normal table should be adjusted for the proper degrees of freedom.
• D)you should use heteroskedasticity-robust standard errors.

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