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Regression-Discontinuity Design - Institute for Policy Research

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Fuzzy RD <strong>Design</strong>s<br />

• Requires a discontinuity in the probability of<br />

treatment at the cutoff such that<br />

limE[D i<br />

| z i<br />

= z c<br />

] ≠ lim E[D i<br />

| z i<br />

= z c<br />

],<br />

but not a 1 to 0 change.<br />

z↓z c<br />

z↑z c<br />

• In practice, this means some individuals<br />

“crossed‐over” treatments or did not “show‐up”<br />

<strong>for</strong> treatment.<br />

• Hahn, Todd, and van der Klaauw (2001) show<br />

that when fuzziness occurs, the local average<br />

treatment effect (LATE) may be inferred <strong>for</strong> the<br />

subset of individuals who are induced into<br />

treatment at the cutoff.

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