In which of the following cases is the local average treatment effect not equal to the average treatment effect? O A. When an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual. B. When the instrument affects each individual equally. OC. When the heterogeneity in the treatment effect and heterogeneity in the effect of the instrument are uncorrelated. O D. When the treatment effect is the same for all individuals. Suppose two researchers use two different instruments that are both valid (i.e., both are relevant and exogenous) to estimate the average causal effect i heterogeneous populations. In large samples, the researchers would obtain different TSLS estimates of the average causal effect.

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In which of the following cases is the local average treatment effect not equal to the average treatment effect?
A. When an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual.
B. When the instrument affects each individual equally.
C. When the heterogeneity in the treatment effect and heterogeneity in the effect of the instrument are uncorrelated.
D. When the treatment effect is the same for all individuals.
Suppose two researchers use two different instruments that are both valid (i.e., both are relevant and exogenous) to estimate the average causal effect in
heterogeneous populations.
In large samples, the researchers would obtain different
TSLS estimates of the average causal effect.
different
the same
Transcribed Image Text:In which of the following cases is the local average treatment effect not equal to the average treatment effect? A. When an individual's decision to receive treatment depends on the effectiveness of the treatment for that individual. B. When the instrument affects each individual equally. C. When the heterogeneity in the treatment effect and heterogeneity in the effect of the instrument are uncorrelated. D. When the treatment effect is the same for all individuals. Suppose two researchers use two different instruments that are both valid (i.e., both are relevant and exogenous) to estimate the average causal effect in heterogeneous populations. In large samples, the researchers would obtain different TSLS estimates of the average causal effect. different the same
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