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

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

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Two Types of Designs<br />

• Sharp Regressi<strong>on</strong> Disc<strong>on</strong>tinuity (SRD) Design<br />

Wi = 1{Xi ≥ c} (1)<br />

All individuals with covariates of c or greater are assigned to<br />

treatment.<br />

• We can use the disc<strong>on</strong>tinuity in the c<strong>on</strong>diti<strong>on</strong>al expectati<strong>on</strong> of<br />

the outcome given the covariate to uncover an average causal<br />

effect of treatment<br />

τSRD = limx↓cE(Yi|Xi = x) − limx↑cE(Yi|Xi = x) (2)

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