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.

Question

Quizplus · Accepted Answer

Causal effects that depend on an observable variable can be estimated by interacting the treatment variable with that observable variable, allowing for the estimation of heterogeneous treatment effects.

Causal Effects That Depend on the Value of an Observable WiW _ { \mathrm { i } }Wi​

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