Regression Discontinuity - Institute for Policy Research
Regression Discontinuity - Institute for Policy Research
Regression Discontinuity - Institute for Policy Research
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What to do about fuzzy allocation?<br />
• RDD as an instrumental variable<br />
– Provides causal estimates if instrument is correlated with treatment<br />
and not with errors in the outcome.<br />
– Proof: Hahn, Todd, and van der Klaauw, 2001<br />
– Examples: Angrist & Lavy, 1999; Jacob and Lefgren, 2004a, 2004b;<br />
van der Klaauw, 2002<br />
– In this case, we implemented in a regression (two stage least<br />
squares) framework as opposed to the non-parametric wald<br />
estimator