Regression Discontinuity - Institute for Policy Research

Estimating Treatment Effects in
Fuzzy RDDs
• LATE is equivalent to the difference in mean
outcomes for the treatment and comparison
groups (ITT estimate) divided by the difference in
treatment receipt rates for both groups within a
close neighborhood around the cutoff.
lim
z¯z c
lim
z¯z c
E[Y i
| z i
= z c
]- limE[Y i
| z i
- z c
]
z­z c
E[D i
| z i
= z c
]- limE[D i
| z i
- z c
]
z­z c
• In a regression framework, this is estimated
through a two-stage least square IV approach.