Citations of regression discontinuity designs in economics. Lee and thomas lemieux this paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers. Manipulation of the running variable in the regression discontinuity design. Econometric model i in general, the mathematical equations are written for the whole population, and in econometric analysis, we almost always deal with sample data. The regression discontinuity design rdd is a quasiexperimental design that estimates the causal effect of a treatment when its assignment is defined by a threshold value for a continuous. Farnsworth october 26, 2008 this paper was originally written as part of a teaching assistantship and has subsequently become a personal reference. Frandsen, markus frolich and blaise melly journal of econometrics, 2012, vol. In regression discontinuity rd designs for evaluating causal effects of interventions, assignment to a treatment is. A practical introduction to regression discontinuity. Since the late 1990s there has been a large number of studies in economics applying. An economic approach to generalize findings from regression. The economics and econometrics of innovation an overview david encaoua, bronwyn h. Request pdf regression discontinuity design in economics this paper provides an introduction and user guide to regression discontinuity rd designs.
A density test, mccrary, journal of econometrics 2008 regression discontinuity designs. The factors, being estimated from the high dimensional data, can help to improve forecast, provide e cient instruments, control for nonlinear unobserved heterogeneity, etc. Age of clock 1400 1800 2200 125 150 175 age of clock yrs n o ti c u a t a d l so e c i pr 5. Regression discontinuity design department of economics. A brief guide to r for beginners in econometrics mahmood arai department of economics, stockholm university first version. Regression discontinuity designs in economics 283 assigned to individuals or units with a value of x greater than or equal to a cutoff value c. Bootstrap confidence intervals for sharp regression discontinuity designs with the uniform kernel, isu general staff papers 201605010700001003, iowa state university, department of economics. From its inception the design has been termed quasiexperimental, re. Regression discontinuity designs with clustered data, by otavio bartalotti and quentin brummet.
Manipulation of the running variable in the regression. Concepts are discussed using examples drawn from the growing body of empirical research using rd. We introduce a nonparametric estimator for local quantile treatment effects in the regression discontinuity rd design. The regression discontinuity rd data design is an evaluation design that was. Cook argues the resurgence of the rd design in economics is unique as it is still rarely used in other disciplines. In regression discontinuity rd designs for evaluating causal effects of interventions, assignment to a treatment is determined at least partly by the value of an observed covariate lying on either side of a.
Regression discontinuity designs in economics pdf regression discontinuity designs in economics. The iza institute of labor economics is an independent economic research institute that conducts research in. Regression discontinuity designs in economics, journal of economic literature, american economic. C1,h0,i0,j0 abstract this paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers.
Often access to, or incentives for participation in, a service or program is assigned based on transparent rules with criteria based on clear cutoff values, rather than on discretion of administrators. Regression discontinuity design in economics request pdf. Journal of econometrics, 1422, february 2008, pages 698. It presents the basic theory behind the research design, details when rd is likely to be valid or invalid given economic incentives. Hoover first draft, 3 january 2005 revised, 15 february 2005 department of economics university of california one shields avenue davis, california 966168578 u. Hall, francois laisney, and jacques mairesse during the past few decades, the interest of economists in the sources of long run economic growth has led an increasing number to focus their attention on the role of innovation in creating that growth. A guide to practice, imbens and lemiux, journal of econometrics 2008. In other countries, such as the us, however, starting school early or late or being held back or accelerated is much more common. Oct 26, 2012 brian mccall presents regression discontinuity design. Regression discontinuity designs in economics assigned to individuals or. Testing stability of regression discontinuity models, by giovanni cerulli, yingying dong, arthur lewbel and alexander poulsen. In the srd design the assignment w i is a deterministic function of one of the.
Evidence from a regression discontinuity analysis in india nathaniel young abstract this paper investigates the e ects of formal banking expansion on economic growth. Quantile treatment effects in the regression discontinuity design. Regression discontinuity designs in economics american. Economic behavior and the regressiondiscontinuity design. A history of the regressiondiscontinuity design in psychology, statistics, and economics, journal of econometrics 142 2008, 636654. Citescore values are based on citation counts in a given year e.
Theory and practice, by david card, david lee, zhuan pei and andrea weber. Evidence from satellite data on lights at night maxim l. Abstract this paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers. Including covariates in the regression discontinuity design iza. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Introduction a regression discontinuity rd design is a powerful and widely applicable identification strategy. I learned most of this stu by trial and error, so it may contain ine ciencies, inaccuracies, or incomplete explanations. It may be pointed out that the econometric methods can be used in other areas like engineering sciences, biological sciences, medical sciences, geosciences, agricultural sciences etc. Pdf regression discontinuity designs in economics semantic. An economic approach to generalize findings from regression discontinuity designs nirav mehta november 6, 2015 abstract regression discontinuity rd designs estimate treatment e ects at a cuto.
This paper provides an introduction and user guide to regression discontinuity rd designs for empirical researchers. Rd designs can be invalid if individuals can precisely manipulate the assignment variable. The regression discontinuity design rdd, introduced by thistlethwaite and campbell 1960, has surged in popularity among applied economists. Introduction one view of economics is that it is a predictive science, with the goal of. Thistlethwaite and campbells original article concerned the evaluation of the impact of receiving a national merit award on students success in obtaining additional college scholarships and on their career aspirations. I exploit a previously unstudied reform to bank branching policy in india, which led to a large expansion in private credit to nancially underserved areas. Between prediction and criticism if you put two economists in a room, you get two opinions, unless one of them is lord keynes, in which case you get three opinions. Lemieux regression discontinuity designs in economics journal of economic literature, june 2010.
Regression discontinuity designs in economics nber. Rd designs as local randomized experiments and the manipulation problem. Published in volume 48, issue 2, pages 2855 of journal of economic literature, june 2010, abstract. Regression discontinuity designs in economics david s. Although econometricians routinely estimate a wide variety of statistical models, using many di. Linear equations with one variable recall what a linear equation is. In the sharp rd design this variable fully determines the treatment according to the. Regression discontinuity designs in economics econpapers.
Regression discontinuity rd designs were first introduced by donald l. Simple linear regression slr introduction sections 111 and 112 abrasion loss vs. Most downloaded journal of econometrics articles elsevier. Regression discontinuity designs in economics princeton university. Including covariates in the regression discontinuity design. This paper shows that much can be learned about average treatment e ects for the treated. This paper provides an introduction and user guide to regression discontinuity rd designs for empirical resear. Akramov ifpri, washington, dc, usa training course on applied econometric analysis. Regression discontinuity designs with sample selection. The test is implemented as a wald test of the null hypothesis that the discontinuity is zero.
I linear on x, we can think this as linear on its unknown parameter, i. The estimator, which is a simple extension of the local linear density estimator cheng et al. The proposed test is based on an estimator for the discontinuity at the cutoff in the density function of the running variable. Regression discontinuity designs in economics by david s. The regression discontinuity designtheory and applications. Extensions cattaneo, idrobo, and titiunik, forthcoming, our goal is to provide an accessible and practical guide for the analysis and interpretation of rd designs that encourages the use of a common set of practices and facilitates the accumulation of rdbased empirical evidence. Regression discontinuity design in economics article in journal of economic literature 482. Regression discontinuity designs vancouver school of economics. Econometric issues at the university of texas at dallas as part of the seminar series for the texas. This paper provides an introduction and user guide to regression.