In the Case of Heterogeneous Causal Effects, the Following Is

question 24

Multiple Choice

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(u_i | X_i)= 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.

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Definitions:

Psychoanalysis

A therapeutic approach that explores unconscious motivations, conflicts, and past experiences to understand and resolve psychological issues and improve mental health.

Self-references

The practice of referring to oneself, which in psychology could pertain to how individuals perceive and evaluate themselves.

Overgeneralizing

A mental bias characterized by making extensive, general assumptions from one occurrence or bit of data.

Dichotomous Thinking

A cognitive distortion involving seeing things in black and white, or all-or-nothing terms, lacking shades of gray.