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

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RD Examples: DiNardo, J., Lee, D.S., 2004, QJE) Effect of unionization on labor market outcomes • Using US establishment-level data on establishments that faced union organizing drives during 1984-1999, this paper uses a sharp RD design to estimate the impact of unionization on business survival, employment, output, productivity, and wages. • Compares outcomes for employers where unions won the election by aclosemarginwiththosewheretheunionslostbyaclosemargin (e.g. 49% compared to 51%). • Impacts on all outcomes are small and impacts on wages are close to zero. Concludes that mandates for employers to bargain with unions had little effect.
RD Examples: Card, D., Mas, A., Rothstein, J., (2006, QJE) Tests for discontinuities in the dynamics of neighborhood racial composition • Theoretical models of social interactions (Schelling (1971)) predict tipping behavior in neighborhoods - e.g. once the minority share in a neighborhood exceeds a so-called tipping point,all the whites leave. • This paper uses regression discontinuity methods and Census tract data from 1970 through 2000 to test for discontinuities in the dynamics of neighborhood racial composition. • Finds evidence for tipping-like behavior in most cities, with a distribution of tipping points ranging from 5% to 20% minority share, but evidence for tipping points in on other outcomes, like house prices.
Page 1 and 2:
Applying Regression Discontinuity D
Page 3 and 4: • Many studies implicitly rely on
Page 5 and 6: Assignment to Treatment • Let (Xi
Page 8 and 9: Two Types of Designs • Fuzzy Regr
Page 10: Take the difference, use the fact t
Page 13 and 14: Define compliance status • Compli
Page 15 and 16: Interpretation of τFRD In that cas
Page 17 and 18: Comparison of RD Approach with a Ma
Page 19 and 20: Estimation • For sharp design, ne
Page 21 and 22: Boundary bias plimˆµr (c)= c+h c
Page 23 and 24: Estimation under the FRD design Aga
Page 25 and 26: Smoothing parameter selection • F
Page 27 and 28: Assessing the variance of the estim
Page 29 and 30: Should analysis condition on other
Page 31 and 32: RD Examples: Card, D., Dobkin, C.,(
Page 33 and 34: RD Examples: Lalive (2007, J of Eco
Page 39: RD Examples: Jacob, B.A., Lefgren,
Page 46 and 47: Examples: Hahn, J., Todd, P., Van D
Page 52 and 53: RD Examples Estimating the value pa
Page 56 and 57: RD Examples: Lee (2007, J of Econom
Page 58 and 59: 3. Examine robustness of the result
Page 60: 4. Robustness can be examined using
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