Multiple Choice
What object from the first stage regression (of two-stage least squares) is critical to incorporate in your implementation of the second stage regression?
A) The estimated coefficient for the treatment variable from the first stage.
B) The estimated residuals for the treatment variable from the first stage.
C) The estimated predictions for the endogenous variable from the first stage.
D) The estimated residuals for the endogenous variable from the first stage.
Correct Answer:
Verified
Correct Answer:
Verified
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