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Regression Discontinuity Designs in Economics

Author

Listed:
  • David S. Lee

    (Princeton University and NBER)

  • Thomas Lemieux

    (University of British Columbia and NBER)

Abstract

This paper provides an introduction and "user guide" to Regression Discontinuity (RD) designs for empirical researchers. It presents the basic theory behind the research design, details when RD is likely to be valid or invalid given economic incentives, explains why it is considered a "quasi-experimental" design, and summarizes different ways (with their advantages and disadvantages) of estimating RD designs and the limitations of interpreting these estimates. Concepts are discussed using using examples drawn from the growing body of empirical research using RD.

Suggested Citation

  • David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs in Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
  • Handle: RePEc:pri:indrel:548
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    More about this item

    Keywords

    Regression Discontinuity; research design; incentives;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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