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Activity Number: 503
Type: Invited
Date/Time: Wednesday, August 7, 2013 : 10:30 AM to 12:20 PM
Sponsor: Business and Economic Statistics Section
Abstract - #307686
Title: Using Local Randomization to Analyze Regression Discontinuity Designs
Author(s): Adam Sales*+ and Ben B. Hansen
Companies: University of Michigan and University of Michigan
Keywords:
Abstract:

Identification in regression discontinuity designs (RDDs) stems from "local randomization" of treatment assignment in a window around the threshold. However, conventional practice does not directly choose or assess such a window. We present techniques that use covariates to weaken the relevant local randomization assumptions, along with strengthened tests of the new assumptions. The resulting method furnishes inferences on averages of treatment effects across the chosen window, as opposed to within infinitesimal neighborhoods of a threshold. We demonstrate it on the dataset from Lindo, et al. (2008), evaluating the effect of undergraduate academic probation on future academic performance.


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