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Another look at the regression discontinuity design

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Author Info
Erich Battistin () (Institute for Fiscal Studies)
Enrico Rettore

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Abstract

The attractiveness of the Regression Discontinuity Design (RDD) in its sharp formulation rests on close similarities with a formal experimental design. On the other hand, it is of limited applicability since rarely individuals are assigned to the treatment group on the basis of a pre-program measure observable to the analyst. Besides, it only allows to identify the mean impact of the program for a very specific sub-population of individuals. In this paper we show that the sharp RDD straightforwardly generalizes to the instances in which the eligibility for the program is established with respect to an observable pre-program measure with eligible individuals self-selecting into the treatment group according to an unknown process. This set-up also turns out very convenient to define a specification test on conventional non-experimental estimators of the program effect needed to identify the mean impact away from the threshold for eligibility. Data requirements are made explicit.

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Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP01/03.

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Length: 18 pp.
Date of creation: Mar 2003
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Handle: RePEc:ifs:cemmap:01/03

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
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  2. Heckman, James J & Smith, Jeffrey A, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring. [Downloadable!] (restricted)
  3. Joshua D. Angrist & Guido W. Imbens, 1991. "Sources of Identifying Information in Evaluation Models," NBER Technical Working Papers 0117, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
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  5. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September. [Downloadable!] (restricted)
  6. Erich Battistin & Enrico Rettore, 2002. "Testing for programme effects in a regression discontinuity design with imperfect compliance," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 39-57. [Downloadable!] (restricted)
  7. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January. [Downloadable!]
  8. Wilbert van der Klaauw, 2002. "Estimating the Effect of Financial Aid Offers on College Enrollment: A Regression-Discontinuity Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1249-1287, November. [Downloadable!] (restricted)
  9. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March. [Downloadable!] (restricted)
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  10. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier. [Downloadable!] (restricted)
  11. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2001. "Evaluating the employment impact of a mandatory job search assistance program," IFS Working Papers W01/20, Institute for Fiscal Studies. [Downloadable!]
  12. James Heckman & Jeffrey Smith & Christopher Taber, 1994. "Accounting for Dropouts in Evaluations of Social Experiments," NBER Technical Working Papers 0166, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, vol. 69(1), pages 201-09, January.
  14. Daniel Friedlander & David H. Greenberg & Philip K. Robins, 1997. "Evaluating Government Training Programs for the Economically Disadvantaged," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1809-1855, December. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ghazala Azmat, 2006. "The Incidence of an Earned Income Tax Credit: Evaluating the Impact on Wages in the UK," CEP Discussion Papers dp0724, Centre for Economic Performance, LSE. [Downloadable!]
  2. Burgert, Derik, 2006. "Einstellungschancen von Älteren – Wie wirkt der Schwellenwert im Kündigungsschutz?," MPRA Paper 5846, University Library of Munich, Germany. [Downloadable!]
  3. Santarossa, Gino, 2008. "Note d'introduction sur l'évaluation d'impact d'un programme public par la méthode de régression par discontinuité
    [The Evaluation of Public Program Effect Using Regression Discontinuity Method    ," MPRA Paper 11268, University Library of Munich, Germany. [Downloadable!]
  4. Jens Hainmueller & Holger Lutz Kern, 2005. "Incumbency Effects in German and British Elections: A Quasi- Experimental Approach," Public Economics 0505009, EconWPA. [Downloadable!]
  5. Burgert, Derik, 2005. "The Impact of German Job Protection Legislation on Job Creation in Small Establishments - An Application of the Regression Discontinuity Design," MPRA Paper 5971, University Library of Munich, Germany. [Downloadable!]
  6. Sergio de Nardis & Massimo Mancini & Carmine Pappalardo, 2003. "Regolazione del mercato del lavoro e crescita dimensionale delle imprese: Una verifica sull'effetto soglia dei 15 dipendenti," ISAE Working Papers 38, ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY). [Downloadable!]
  7. Burgert, Derik, 2005. "Schwellenwerte im deutschen Kündigungsschutzrecht Ein Beschäftigungshindernis für kleine Unternehmen?," MPRA Paper 5969, University Library of Munich, Germany. [Downloadable!]
  8. Elisabetta Trevisan, 2008. "Enforcement of Employment Protection and the hiring behaviour of firms. Evidence from a large Italian region," Working Papers 2008_25, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
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