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Multi-cutoff RD designs with observations located at each cutoff: problems and solutions

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  • Fort, Margherita
  • Ichino, Andrea
  • Rettore, Enrico
  • Zanella, Giulio

Abstract

In RD designs with multiple cutoffs, the identification of an average causal effect across cutoffs may be problematic if a marginally exposed subject is located exactly at each cutoff. This occurs whenever a fixed number of treatment slots is allocated starting from the subject with the highest (or lowest) value of the score, until exhaustion. Exploiting the ``within’’ variability at each cutoff is the safest and likely efficient option. Alternative strategies exist, but they do not always guarantee identification of a meaningful causal effect and are less precise. To illustrate our findings, we revisit the study of Pop-Eleches and Urquiola (2013).

Suggested Citation

  • Fort, Margherita & Ichino, Andrea & Rettore, Enrico & Zanella, Giulio, 2022. "Multi-cutoff RD designs with observations located at each cutoff: problems and solutions," CEPR Discussion Papers 16974, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:16974
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    3. Corinna Ghirelli & Enkelejda Havari & Elena Meroni & Stefano Verzillo, 2023. "The long-term causal effects of winning an ERC grant," Working Papers 2313, Banco de España.
    4. Cingano, Federico & Palomba, Filippo & Pinotti, Paolo & Rettore, Enrico, 2023. "Granting more bang for the buck: The heterogeneous effects of firm subsidies," Labour Economics, Elsevier, vol. 83(C).

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    More about this item

    Keywords

    Regression discontinuity; Multiple cutoffs; Normalizing-and-pooling;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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