The Logic of Control Variables in IV Regressions

question 31

Multiple Choice

The logic of control variables in IV regressions

• A)parallels the logic of control variables in OLS
• B)only applies in the case of homoskedastic errors in the first stage of two stage least squares estimation
• C)is different in a substantial way from the logic of control variables in OLS since there are two stages in estimation
• D)implies that the TSLS is efficient

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