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

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

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Fuzzy Regressi<strong>on</strong> Disc<strong>on</strong>tinuity Designs<br />

1. Graph the average outcomes over a set of bins as in the case of<br />

SRD, but also graph the probability of treatment.<br />

2. Estimate the treatment effect using TSLS applied <strong>on</strong>ly to data<br />

within h of the cut-off (above and below), which is numerically<br />

equivalent to computing the ratio in the estimate of the jump (at<br />

the cutoff point) in the outcome variable over the jump in the<br />

treatment variable.<br />

3. Standard errors can be computed using robust TSLS estimates<br />

or using a plug-in estimator.

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