2
$\begingroup$

For a medical study I am trying to understand the intuition behind heteroscedasticity-consistent standard errors. I know that it can be used, when in OLS regression residuals are heteroscedastic.

By text books only provide a rather technical explanation for it. Can someone provide an explanation for the intuitition behind it? It would be nice if some could explain how White standard errors work without a lot of formulas.

$\endgroup$

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Browse other questions tagged or ask your own question.