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Regression Discontinuity Design with Multivalued Treatments

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  • Carolina Caetano
  • Gregorio Caetano
  • Juan Carlos Escanciano

Abstract

We study identification and estimation in the Regression Discontinuity Design (RDD) with a multivalued treatment variable. We also allow for the inclusion of covariates. We show that without additional information, treatment effects are not identified. We give necessary and sufficient conditions that lead to identification of LATEs as well as of weighted averages of the conditional LATEs. We show that if the first stage discontinuities of the multiple treatments conditional on covariates are linearly independent, then it is possible to identify multivariate weighted averages of the treatment effects with convenient identifiable weights. If, moreover, treatment effects do not vary with some covariates or a flexible parametric structure can be assumed, it is possible to identify (in fact, over-identify) all the treatment effects. The over-identification can be used to test these assumptions. We propose a simple estimator, which can be programmed in packaged software as a Two-Stage Least Squares regression, and packaged standard errors and tests can also be used. Finally, we implement our approach to identify the effects of different types of insurance coverage on health care utilization, as in Card, Dobkin and Maestas (2008).

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  • Carolina Caetano & Gregorio Caetano & Juan Carlos Escanciano, 2020. "Regression Discontinuity Design with Multivalued Treatments," Papers 2007.00185, arXiv.org.
    • Handle: RePEc:arx:papers:2007.00185
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    Cited by:

    1. Matias D. Cattaneo & Rocío Titiunik, 2022. "Regression Discontinuity Designs," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 821-851, August.

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