Causal Effects That Depend on the Value of an Observable $W _ { \mathrm { i } }$

question 10

Multiple Choice

Causal effects that depend on the value of an observable variable, say $W _ { \mathrm { i } }$

• A) cannot be estimated.
• B) can be estimate by interacting the treatment variable with \(W _ { \mathrm { i } }\)
• C) result in the OLS estimator being inefficient.
• D) requires use of homoskedasticity-only standard errors.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, not on accumulated interest.

Discount Rate

The discount rate applied in the evaluation of discounted cash flow to ascertain the current worth of anticipated future cash flows.

Promissory Note

A fiscal agreement in which one side promises in writing to pay a fixed amount of cash to the other side, either immediately when demanded or on a future agreed date.

Promissory Note

A monetary tool involving a formal commitment from one party to compensate another party with a specific amount of money, either upon request or at an agreed future time.