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Empirical likelihood for regression discontinuity design

Listed author(s):
  • Otsu, Taisuke
  • Xu, Ke-Li
  • Matsushita, Yukitoshi

This paper proposes empirical likelihood based inference methods for causal effects identified from regression discontinuity designs. We consider both the sharp and fuzzy regression discontinuity designs and treat the regression functions as nonparametric. The proposed inference procedures do not require asymptotic variance estimation and the confidence sets have natural shapes, unlike the conventional Wald-type method. These features are illustrated by simulations and an empirical example which evaluates the effect of class size on pupils’ scholastic achievements. Furthermore, for the sharp regression discontinuity design, we show that the empirical likelihood statistic admits a higher-order refinement, so-called the Bartlett correction. Bandwidth selection methods are also discussed.

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File URL: http://www.sciencedirect.com/science/article/pii/S0304407614001444
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Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 186 (2015)
Issue (Month): 1 ()
Pages: 94-112

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Handle: RePEc:eee:econom:v:186:y:2015:i:1:p:94-112
DOI: 10.1016/j.jeconom.2014.04.023
Contact details of provider: Web page: http://www.elsevier.com/locate/jeconom

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  8. Donna Feir & Thomas Lemieux & Vadim Marmer, 2016. "Weak Identification in Fuzzy Regression Discontinuity Designs," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 34(2), pages 185-196, April.
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  11. Horowitz, Joel L. & Savin, N. E., 2000. "Empirically relevant critical values for hypothesis tests: A bootstrap approach," Journal of Econometrics, Elsevier, vol. 95(2), pages 375-389, April.
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  19. Kaido, Hiroaki, 2016. "A dual approach to inference for partially identified econometric models," Journal of Econometrics, Elsevier, vol. 192(1), pages 269-290.
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  25. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule to Estimate the Effect of Class Size on Scholastic Achievement," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 533-575.
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