In the case of heterogeneous causal effects, the following is not true:
A) in the circumstances in which OLS would normally be consistent (when E(ui Xi) = 0), the OLS estimator continues to be consistent.
B) OLS estimation using heteroskedasticity-robust standard errors is identical to TSLS.
C) the OLS estimator is properly interpreted as a consistent estimator of the average causal effect in the population being studied.
D) the TSLS estimator in general is not a consistent estimator of the average causal effect if an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual.
Ans: A) in the circumstances in which OLS would normally be consistent (when E(ui Xi) = 0), the OLS estimator continues to be consistent.
You might also like to view...
Refer to the figure above. What is the loss in the market-wide consumer surplus when the price of wine changes from $9 to $18?
A) $144,000 B) $30,000 C) $57,000 D) $0
The Rule of 70 is used to
A) estimate how much of an economy's growth rate is due to increases in capital per hour of labor. B) calculate the standard of living. C) calculate the economy's growth rate. D) estimate how long it will take the level of any variable to double.