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Testing for programme effects in a regression discontinuity design with imperfect compliance

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  • Erich Battistin
  • Enrico Rettore

Abstract

Summary. The administrators of an office automation training programme in Italy enrolled applicants on the basis of their score in an attitudinal test, with low scoring subjects mandated out of the programme. Some of the applicants who were mandated out resorted to an alternative programme. To identify the effect of the programme by comparing participants with non‐participants we need to account properly for both the selection by the score and the contamination of the comparison group by a number of non‐complying subjects. The estimand resulting from using the mandated status as an instrumental variable for the actual status identifies the effect of the programme on complying subjects exhibiting a score in the attitudinal test in the neighbourhood of the threshold for selection. Simple nonparametric instrumental variable estimators based on the work of Robinson and Hahn and co‐workers reveal that the programme had no effect on the probability of being in work several months after its completion. Simulation results show that in spite of the small sample size the test for the no‐impact hypothesis has non‐negligible power even at small departures from the null hypothesis. As a side‐result Robinson's test turns out to be appreciably more powerful than the other test.

Suggested Citation

  • 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, February.
  • Handle: RePEc:bla:jorssa:v:165:y:2002:i:1:p:39-57
    DOI: 10.1111/1467-985X.0asp6
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    References listed on IDEAS

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    Cited by:

    1. David S. Lee & Thomas Lemieux, 2009. "Regression Discontinuity Designs In Economics," Working Papers 1118, Princeton University, Department of Economics, Industrial Relations Section..
    2. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    3. Daniel Höhmann, 2017. "The effect of legislature size on public spending: evidence from a regression discontinuity design," Public Choice, Springer, vol. 173(3), pages 345-367, December.
    4. Jin-young Choi & Myoung-jae Lee, 2017. "Regression discontinuity: review with extensions," Statistical Papers, Springer, vol. 58(4), pages 1217-1246, December.
    5. Erich Battistin & Enrico Rettore, 2003. "Another look at the regression discontinuity design," CeMMAP working papers CWP01/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    6. Ravallion, Martin, 2008. "Evaluating Anti-Poverty Programs," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 59, pages 3787-3846, Elsevier.
    7. Jens Hainmueller & Holger Lutz Kern, 2005. "Incumbency Effects in German and British Elections: A Quasi- Experimental Approach," Public Economics 0505009, University Library of Munich, Germany.
    8. Frölich, Markus, 2007. "Regression Discontinuity Design with Covariates," IZA Discussion Papers 3024, Institute of Labor Economics (IZA).
    9. Vincent J. Shea & Kevin E. Dow & Alain Yee-Loong Chong & Eric W. T. Ngai, 0. "An examination of the long-term business value of investments in information technology," Information Systems Frontiers, Springer, vol. 0, pages 1-15.
    10. Battistin, Erich & Rettore, Enrico, 2008. "Ineligibles and eligible non-participants as a double comparison group in regression-discontinuity designs," Journal of Econometrics, Elsevier, vol. 142(2), pages 715-730, February.
    11. Elena Ragazzi & Lisa Sella, 2013. "Migration and work: the cohesive role of vocational training policies," ERSA conference papers ersa13p582, European Regional Science Association.
    12. Greta Falavigna & Elena Ragazzi & Lisa Sella, 2014. "Gender inequalities and labour integration. An integrated approach to vocational training in Piedmont," CERIS Working Paper 201407, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    13. Elena Ragazzi & Lisa Sella, 2013. "The effectiveness of vocational training policies: methods for an impact evaluation," CERIS Working Paper 201314, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    14. Elisa BARBIERI & Lauretta RUBINI & Alessandra MICOZZI, 2013. "Evaluating policies for innovation and university-firm relations. An investigation on the attitude of Italian academic entrepreneurs towards collaborations with firms," Economia Marche / Journal of Applied Economics, Universita' Politecnica delle Marche (I) / Fondazione Aristide Merloni (I), vol. 0(2), pages 17-45, December.
    15. Juan Carlos Calcagno & Bridget Terry Long, 2008. "The Impact of Postsecondary Remediation Using a Regression Discontinuity Approach: Addressing Endogenous Sorting and Noncompliance," NBER Working Papers 14194, National Bureau of Economic Research, Inc.
    16. Vincent J. Shea & Kevin E. Dow & Alain Yee-Loong Chong & Eric W. T. Ngai, 2019. "An examination of the long-term business value of investments in information technology," Information Systems Frontiers, Springer, vol. 21(1), pages 213-227, February.
    17. Elena Ragazzi & Lisa Sella, 2013. "Una valutazione di impatto delle politiche formative regionali: il caso piemontese," CERIS Working Paper 201315, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    18. Falavigna Falavigna & Elena Ragazzi & Lisa Sella, "undated". "Vocational training and labour market: inclusion or segregation paths? An integrated approach on immigrant trainees in Piedmont," CERIS Working Paper 201425, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    19. Yixiao Sun, 2005. "Adaptive Estimation of the Regression Discontinuity Model," Econometrics 0506003, University Library of Munich, Germany.
    20. Deborah A. Cobb‐Clark & Thomas Crossley, 2003. "Econometrics for Evaluations: An Introduction to Recent Developments," The Economic Record, The Economic Society of Australia, vol. 79(247), pages 491-511, December.

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