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Regression-Discontinuity Design - Institute for Policy Research

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Adding Nonlinear and Interaction Terms<br />

to the Model<br />

• And one can add both nonlinear and interaction<br />

terms to the model:<br />

Y i<br />

= ˆβ 0<br />

+ ˆβ 1<br />

d i<br />

+ ˆβ 2<br />

(z i<br />

− z c<br />

) + ˆβ 3<br />

(z i<br />

− z c<br />

) 2<br />

+ ˆβ 4<br />

d i<br />

(z i<br />

− z c<br />

) + ˆβ 5<br />

d i<br />

(z i<br />

− z c<br />

) 2 + e i<br />

• As you can imagine, the model can get quite large.<br />

• Though it may seem complex, all this can easily be<br />

done in SPSS, and all the relevant terms can easily be<br />

defined with simple SPSS Compute statements.

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