In the Case of Heterogeneous Causal Effects, the Following Is $\left. E \left( u _ { i } \mid X _ { i } \right) = 0 \right)$

question 23

Short Answer

In the case of heterogeneous causal effects, the following is not true: a. in the circumstances in which OLS would normally be consistent (when $\left. E \left( u _ { i } \mid X _ { i } \right) = 0 \right)$ , 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.

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Definitions:

Similarity

The state of being similar or alike, often leading to psychological connections or associations.

Proximity

The state, quality, or fact of being close or near; physical closeness.

Gestalt Principle

A theory in psychology suggesting that people tend to organize visual elements into groups or unified wholes when certain principles are applied.

Proximity

The physical closeness or distance between objects or people, which can influence various psychological processes including attraction and the formation of relationships.