Failure to follow the treatment protocol means that
A) the OLS estimator cannot be computed.
B) instrumental variables estimation of the treatment effect should be used where the initial random assignment is the instrument for the treatment actually received.
C) you should use the TSLS estimator and regress the outcome variable Y on the initial random assignment in the first stage to get predicted values of the outcome variable.
D) the Hawthorne effect plays a crucial role.
Answer: B) instrumental variables estimation of the treatment effect should be used where the initial random assignment is the instrument for the treatment actually received.
You might also like to view...
Securities markets perform a valuable economic function because they provide
A. an opportunity for investors to make money in a short time. B. the principal indicator of the performance of the U.S. economy. C. an easy way to transfer corporate securities, thereby reducing risk to investors. D. assurance that stock purchasers can get back the purchase price of their stock.
An investor who sees through irrational optimism of a market could:
A. earn a profit by betting against what everyone else is doing. B. follow the lead of what most are doing, and earn consistent profits. C. earn a profit by being a "leader" among the "herd." D. be overwhelmed by market optimism and simply do what everyone else is doing.
Suppose the market price for one unit of a good is $12.50, and 50 units will be exchanged at that price. If a price floor is imposed at $12.00 per unit, the price will: a. fall to $12.00, and quantity will fall below 50 units
b. fall to $12.00, and quantity will remain at 50 units. c. remain at $12.50, and quantity will rise above 50 units. d. remain at $12.50, and quantity will remain at 50 units.
If the required reserve ratio is 0.20, what is the maximum amount of money that can be created from a $5 million deposit in the banking system?
A. $25 million B. $50 million C. $5 million D. $20 million