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(ui Xi) = 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.
Ans: A) in the circumstances in which OLS would normally be consistent (when E(ui Xi) = 0), the OLS estimator continues to be consistent.
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