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Regression-Discontinuity Design - Institute for Policy Research

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Two Rationales <strong>for</strong> RDD<br />

1. Selection process is completely known and can be modeled<br />

through a regression line of the assignment and outcome<br />

variables<br />

– Untreated portion of the AV serves as a counterfactual<br />

2. It is like an experiment around the cutoff<br />

– Benefit: Functional <strong>for</strong>m need not be identified away<br />

from the cutoff<br />

• Empirically validated by 6 within‐study comparisons<br />

(Aiken et al., 1998; Buddelmeyer & Skoufias, 2005;<br />

Black, Galdo & Smith, 2007; Berk et al., in press;<br />

Greene, 2010; Shadish et al., 2011), even though<br />

estimands differ between RE and RD and power too

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