Select all of the following groups for which the CATE is unbiased for the true treatment effect.

Question

BlackTom AI · Accepted Answer

Question restatement: Select all of the following groups for which the CATE is unbiased for the true treatment effect. Answer choices provided: Compliers.

First, consider what CATE means. CATE stands for the conditional average treatment effect within a specified subgroup defined by observed characteristics. Whether this quantity is unbiased depends on the identification strategy and the assumptions in play, such as unconfoundedness or instrumental variable (IV) conditions, and the subgroup being properly defined.

Option analysis (single option provided):
- Compliers: In contexts with instrumental variables (where there is noncompliance with a randomized assignment), the Local Average Treatment Effect (LATE) identifies the average treatment effect for compliers—the subgroup whose treatment status is affected by the instrument. Under standard IV assumptions (relevance, independence, monotonicity), the estimated effect for compliers is unbiased for the true treatment effect within the complier group. In other words, CATE conditional on being a complier aligns with the effect that the instrument identifies for that subgroup, provided those IV assumptions hold. This makes compliers the group for which the CATE can be unbiased in this IV framework.

- Other possible groups (not listed): In a broader setting, for always-takers, never-takers, or defiers, the CATE is not generally unbiased for the true treatment effect across those subgroups unless strong, often implausible assumptions hold (and many IV frameworks explicitly do not support unbiased causal effects for these groups without additional structure). Since no other groups are specified in the question, we cannot evaluate them directly here, but the standard caution is that CATE typically requires careful alignment between subgroup definition and identification strategy to be unbiased.

In summary, given the typical identification scenario where a subgroup is defined by compliers and IV assumptions apply, the complier group is the one for which the CATE corresponds to an unbiased estimand of the true treatment effect for that subgroup. The reasoning hinges on how the instrument affects treatment receipt and the monotonicity/independence assumptions that isolate the complier effect. If the instrument or assumptions fail, the unbiasedness would not hold for that group.

FA25_QTM_110_1 Quiz #9: Regression Discontinuity Designs and Instrumental Variables

Select all of the following groups for which the CATE is unbiased for the true treatment effect.

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