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Notes on Regression Discontinuity Methods - [athena.sas.upenn ...

Notes on Regression Discontinuity Methods - [athena.sas.upenn ...

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RD Examples: Card, D., Dobkin, C.,(2008,AER)<br />

Effect of health insurance coverage <strong>on</strong> health care utilizati<strong>on</strong><br />

• Medicare eligibility at age 65 leads to sharp changes in the health<br />

insurance coverage of the U.S. populati<strong>on</strong> and health care<br />

utilizati<strong>on</strong> increases after age 65.<br />

• Paper compares health-related outcomes (such as different kinds of<br />

doctor visits and proceures) am<strong>on</strong>g people just before and just after<br />

65, also examining results disaggregated according to group<br />

characteristics.<br />

• It follows DiNardo and Lee (2004) and assumes the age profiles in<br />

equati<strong>on</strong>s (1), (2a) and (2b) are c<strong>on</strong>tinuous polynomials with<br />

potential disc<strong>on</strong>tinuities in the derivatives at age 65.<br />

• They also fit many of the models using local linear regressi<strong>on</strong> (as<br />

suggested by Hahn, Todd and van der Klaauw, 2001) and find<br />

results to be relatively robust.

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