05.03.2014 Views

Regression Discontinuity - Institute for Policy Research

Regression Discontinuity - Institute for Policy Research

Regression Discontinuity - Institute for Policy Research

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

Typical estimation strategy <strong>for</strong><br />

RDs with Multiple Cutoffs<br />

Where Y ij is the outcome <strong>for</strong> participant i in cutoff group j; D is whether<br />

unit i is in treatment or comparison in cutoff group j; AV i is assignment<br />

score <strong>for</strong> unit i (standardized and centered by cutoff group); X i and Z j<br />

are vectors of unit and cutoff-group level covariates (respectively); u j<br />

and ε ij are the unit and cutoff group level random error terms, assumed<br />

to be iid, and τ is the treatment effect <strong>for</strong> unit i in cutoff group j.<br />

• Alternatively, cutoff group-based fixed effects might be included in the<br />

model.<br />

• This model assumes that 1) each cutoff group has the same functional<br />

<strong>for</strong>m; 2) constant treatment effects across cutoffs (though we could<br />

include treatment by cutoff interaction terms); and 3) standardizing and<br />

centering assignment scores by cutoff group weighs units appropriately<br />

<strong>for</strong> estimating desired treatment effects.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!