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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RD Examples<br />
Estimating the value parents place <strong>on</strong> school quality<br />
Black, S., (1999,QJE)<br />
• Uses house prices to infer the value parents place <strong>on</strong> school quality.<br />
• Compares, within school districts, the prices of houses located <strong>on</strong><br />
attendance district boundaries - houses that differ <strong>on</strong>ly by the<br />
elementary school the child attends.<br />
• This comparis<strong>on</strong> removes the variati<strong>on</strong> in neighborhoods, taxes, and<br />
school spending.<br />
• Finds that parents are willing to pay 2.5 percent more for a 5<br />
percent increase in test scores.<br />
• Possible that parents <strong>on</strong> either side are different, so that estimate is<br />
alowerbound<strong>on</strong>valuati<strong>on</strong>.