DUMONT, M.; RAYP, G.; WILLEMÉ, P.; THAS, O. - Faculteit Economie en Bedrijfskunde, Universiteit Gent - 2003
The procedure proposed by Feenstra and Hanson (1997) to correct the standard errors in a two-stage regression with generated dependent variables does not guarantee positive variances. We propose a modified correction procedure such that standard errors can always be computed.