Which of the following is a limitation of serial correlation-robust standard errors?
A. The serial correlation-robust standard errors are smaller than OLS standard errors when there is serial correlation.
B. The serial correlation-robust standard errors can be poorly behaved when there is substantial serial correlation and the sample size is small.
C. The serial correlation-robust standard errors cannot be calculated for autoregressive processes of an order greater than one.
D. The serial correlation-robust standard errors cannot be calculated after relaxing the assumption of homoskedasticity.
Answer: B
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Answer the following statement true (T) or false (F)
National income differs from net national product because
a. it includes profits of corporations. b. of a statistical discrepancy. c. it includes transfer payments. d. it excludes depreciation.
If all taxpayers pay the same dollar amount, the tax is termed a:
A. per unit tax. B. proportional tax. C. progressive tax. D. head tax.
If the money multiplier is 3.0, a $1,000 increase in the monetary base
A) increases quantity of money by $3,000. B) decreases the quantity of money by 3 percent. C) increases the monetary base by $300. D) increases the money multiplier by 3 percent. E) decreases quantity of money by $3,000.