Causal effects that depend on the value of an observable variable, say W_i, A)cannot be estimated. B)can be estimate by interacting the treatment variable with W_i. C)result in the OLS estimator being inefficient. D)requires use of homoskedasticity-only standard errors.

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Quizplus · Accepted Answer

The causal effects that depend on the value of an observable variable can be estimated by interacting the treatment variable with that observable variable. This is known as the moderated effect.

Causal Effects That Depend on the Value of an Observable