How Robust Standard Errors Expose Methodological Problems They Do Not Fix, and What to Do About It
How Robust Standard Errors Expose Methodological Problems They Do Not Fix, and What to Do About It
“Robust standard errors” are used in a vast array of scholarship to correct standard errors for model misspecification. However, when misspecification is bad enough to make classical and robust standard errors diverge, assuming that it is nevertheless not so bad as to bias everything else requires considerable optimism. And even …