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Regression Discontinuity - Institute for Policy Research

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What Is The Target Parameter?<br />

• Average untreated outcome above the cut-off<br />

score.<br />

– The corresponding experiment is random assignment<br />

among people above the cut-off.<br />

– Here, that means random assignment of people over<br />

age 50 <strong>for</strong> one assignment variable and random<br />

assignment of people with expenditures over $7000<br />

last year.<br />

• We also look at the functional <strong>for</strong>ms that are<br />

extrapolated beyond the cut-off. This gives a<br />

sense of the RD estimates that would result if<br />

different cut-off values were selected.

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