Evidence
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In Section 4 we consider RD designs with multiple scores, where treatment assignment depends on more than one variable and the standard single-score framework no longer applies directly. We describe how to define and interpret treatment effects in this setting, and how estimation and inference proceed when the forcing variable is multidimensional.
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Card 1 · Selecting Subpopulations for Causal Inference in Regression Discontinuity Designs
The Brazil Bolsa Familia (BF) program is a conditional cash transfer program aimed to reduce short-term poverty by direct cash transfers and to fight long-term poverty by increasing human capital among poor Brazilian people. Eligibility for Bolsa Familia benefits depends on a cutoff rule, which clas…
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The Brazil Bolsa Familia (BF) program is a conditional cash transfer program aimed to reduce short-term poverty by direct cash transfers and to fight long-term poverty by increasing human capital among poor Brazilian people. Eligibility for Bolsa Familia benefits depends on a cutoff rule, which classifies the BF study as a regression discontinuity (RD) design. Extracting causal information from RD studies is challenging. Following Li et al (2015) and Branson and Mealli (2019), we formally describe the BF RD design as a local randomized experiment within the potential outcome approach. Under this framework, causal effects can be identified and estimated on a subpopulation where a local overlap assumption, a local SUTVA and a local ignorability assumption hold. We first discuss the potential advantages of this framework over local regression methods based on continuity assumptions, which concern the definition of the causal estimands, the design and the analysis of the study, and the int …
Card 2 · Evaluating the Causal Effect of University Grants on Student Dropout: Evidence from a Regression Discontinuity Design Using Principal Stratification
Regression discontinuity (RD) designs are often interpreted as local randomized experiments: a RD design can be considered as a randomized experiment for units with a realized value of a so-called forcing variable falling around a pre-fixed threshold. Motivated by the evaluation of Italian universit…
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Regression discontinuity (RD) designs are often interpreted as local randomized experiments: a RD design can be considered as a randomized experiment for units with a realized value of a so-called forcing variable falling around a pre-fixed threshold. Motivated by the evaluation of Italian university grants, we consider a fuzzy RD design where the receipt of the treatment is based on both eligibility criteria and a voluntary application status. Resting on the fact that grant application and grant receipt statuses are post-assignment (post-eligibility) intermediate variables, we use the principal stratification framework to define causal estimands within the Rubin Causal Model. We propose a probabilistic formulation of the assignment mechanism underlying RD designs, by re-formulating the Stable Unit Treatment Value Assumption (SUTVA) and making an explicit local overlap assumption for a subpopulation around the threshold. A local randomization assumption is invoked instead of more stand …
Card 3 · Regression Discontinuity Designs
The regression discontinuity (RD) design is one of the most widely used nonexperimental methods for causal inference and program evaluation. Over the last two decades, statistical and econometric methods for RD analysis have expanded and matured, and there is now a large number of methodological res…
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The regression discontinuity (RD) design is one of the most widely used nonexperimental methods for causal inference and program evaluation. Over the last two decades, statistical and econometric methods for RD analysis have expanded and matured, and there is now a large number of methodological results for RD identification, estimation, inference, and validation. We offer a curated review of this methodological literature organized around the two most popular frameworks for the analysis and interpretation of RD designs: the continuity framework and the local randomization framework. For each framework, we discuss three main topics: ( a) designs and parameters, focusing on different types of RD settings and treatment effects of interest; ( b) estimation and inference, presenting the most popular methods based on local polynomial regression and methods for the analysis of experiments, as well as refinements, extensions, and alternatives; and ( c) validation and falsification, summarizin …
Card 4 · The Local Randomization Framework for Regression Discontinuity Designs: A Review and Some Extensions
In this work, we extend the local randomization framework to allow for any assignment mechanism, such as Bernoulli trials and block randomization, where propensity scores are allowed to differ. We also develop exact randomization tests for covariate balance to test whether a particular assignment me…
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In this work, we extend the local randomization framework to allow for any assignment mechanism, such as Bernoulli trials and block randomization, where propensity scores are allowed to differ. We also develop exact randomization tests for covariate balance to test whether a particular assignment mechanism holds within an RDD. These tests allow for multiple testing corrections and can be used to select the largest window around the cutoff where a particular assignment mechanism is most plausible. Then, an analysis using this assignment mechanism can be conducted within that window. We apply our methodology to a fuzzy RDD that assesses the effects of financial aid on college dropout rates in Italy.
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