Notes on Regression Discontinuity Methods - [athena.sas.upenn ...
Notes on Regression Discontinuity Methods - [athena.sas.upenn ...
Notes on Regression Discontinuity Methods - [athena.sas.upenn ...
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Comparis<strong>on</strong> of RD Approach with a Matching Approach<br />
• Matching assumes<br />
Y (0),Y (1) ⊥⊥ W |X (8)<br />
• In that case, treatment effect can be obtained by comparing<br />
people with same x values who did and did not receive<br />
treatment<br />
E(Y (1) − Y (0)|X = x)=E(Y |W = 1,X = c) − E(Y |W = 0,X = c)<br />
• This approach would not exploit the jump in the probability of<br />
assignment at the disc<strong>on</strong>tinuity point<br />
• It could not be implemented with a sharp design, where there<br />
is no overlap.<br />
• Treated units with xi = c include both compliers and<br />
alwaystakers.<br />
• Unc<strong>on</strong>foundedness is based <strong>on</strong> units being comparable if<br />
covariates are similar.