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Regression-Discontinuity Design - Institute for Policy Research

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Non‐parametric Approach<br />

lim<br />

x↓c<br />

E[Y i<br />

| z i<br />

= z c<br />

]− lim<br />

x↑c<br />

E[Y i<br />

| z i<br />

= z c<br />

]<br />

• Where z i is the assignment score, z c is the<br />

cutoff, and Y i are the outcomes.<br />

• Treatment effects estimated by examining the size<br />

of the discontinuity in the conditional expectation of<br />

the outcome given the assignment variable <strong>for</strong><br />

observations at the cutoff.<br />

• The limits are often estimated by non-parametric<br />

local linear kernel regression.<br />

• Allows analyst to relax assumptions about functional<br />

<strong>for</strong>m away from the cutoff.

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