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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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