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Monotonicity Test for Local Average Treatment Effects Under Regression Discontinuity

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Abstract

This paper proposes nonparametric monotonicity tests for the (local) average treatment effects under the sharp and fuzzy regression discontinuity designs. The tests allow researchers to examine whether the policy effect of interest has monotonic relationships with conditioning covariates. We show the consistency and asymptotic uniform size control of the proposed tests. The proposed tests are applied to re-investigate the impact of attending a better high school using the Romanian data set studied in Pop-Eleches and Urquiola (2013). We find that the effect of going to a better school on a student’s probability of taking the Baccalaureate exam increases monotonically with peer quality of the school.

Suggested Citation

  • Yu-Chin Hsu & Shu Shen, 2017. "Monotonicity Test for Local Average Treatment Effects Under Regression Discontinuity," IEAS Working Paper : academic research 17-A010, Institute of Economics, Academia Sinica, Taipei, Taiwan.
  • Handle: RePEc:sin:wpaper:17-a010
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    Keywords

    average treatment effect; local average treatment effect; regression discontinuity; regression monotonicity; nonparametric;
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