In the potential outcomes framework with heterogeneous (nonconstant) treatment effect, write the error as u i =
Question:
In the potential outcomes framework with heterogeneous (nonconstant) treatment effect, write the error as
ui = (1 – xi)ui(0) + xiui(1).
Let s20 = Var[ui(0)] and s21 Var[ui(1)]. Assume random assignment.
(i) Find Var(ui | xi).
(ii) When is Var(ui | xi) constant?
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Related Book For
Introductory Econometrics A Modern Approach
ISBN: 9781337558860
7th Edition
Authors: Jeffrey Wooldridge
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