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RegressionDiscontinuity:AdvancedTopics
NYUWagnerRajeevDehejia
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SummaryofRDassumptions
• Thetreatmentisdeterminedatleastinpartbytheassignmentvariable
• Thereisadiscontinuityintheleveloftreatmentatsomecutoffvalueoftheassignmentvariable (selectiononobservablesatthecutpoint)
• Unitscannotpreciselymanipulatetheassignmentvariabletoinfluencewhethertheyreceivethetreatmentornot
• Othervariablesthataffectthetreatmentdonotchangediscontinuouslyatthecutoff
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AssessingthevalidityofanRD
• Itisimpossibletotestthecontinuityassumptiondirectly,butwecantestsomeimplicationsofit
• Namely,allobservedpredeterminedcharacteristicsshouldhaveidenticaldistributionsoneithersideofthecutoff,inthelimit,asweapproachsmallerandsmallerbandwidths.Thatis,thereshouldbenodiscontinuitiesintheobservables.
• Againthereisananalogytoanexperiment:wecannottestwhetherunobservedcharacteristicsarebalanced,butwecantesttheobservables.Rejectioncallstherandomizationintoquestion.
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Internal&externalvalidity
• ThestrengthoftheRDdesignisitsinternalvalidity,arguablythestrongestofanyquasi-experimentaldesign
• Externalvaliditymaybelimited
• SharpRD(SRD)providesestimatesforthesubpopulationwithX=c,thatisthoserightatthecutoffoftheassignmentvariable.
– Thediscontinuityisaweightedaveragetreatmenteffectwhereweightsareproportionaltotheexantelikelihoodthatanindividual’srealizationofXwillbeclosetothethreshold.
• FuzzyRD(FRD)restrictstheestimatesfurthertocompliersatthecutoff(moreonthisbelow)
• Youneedtojustifyextrapolationtoothersubpopulations(e.g.,treatmenthomogeneity)
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ThreatstoanRDanalysis
TherearethreegeneraltypesofthreatstoanRDdesign:
1. Othervariableschangediscontinuouslyatthecutoff– Testforjumpsincovariates,includingpretreatmentvaluesof
theoutcomeandthetreatment
2. Therearediscontinuitiesatothervaluesoftheassignmentvariable
3. Manipulationoftheassignmentvariable– Testforcontinuityinthedensityoftheassignmentvariableat
thecutoff
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Specificationchecks
A. DiscontinuitiesinAverageCovariates
B. ADiscontinuityintheDistributionoftheForcingVariable
C. DiscontinuitiesinAverageOutcomesatOtherValues
D. SensitivitytoBandwidthChoice
E. FuzzyRDDesign
F. Extension:RegressionKinkDesign
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A.DiscontinuitiesinaveragecovariatesTestthenullhypothesisofazeroaverageeffectonpseudooutcomesknownnottobeaffectedbythetreatment.
Suchvariablesincludecovariatesthatarebydefinitionnotaffectedbythetreatment.Suchtestsarefamiliarfromsettingswithidentificationbasedonunconfoundednessassumptions.
Althoughnotrequiredforthevalidityofthedesign,inmostcases,thereasonforthediscontinuityintheprobabilityofthetreatmentdoesnotsuggestadiscontinuityintheaveragevalueofcovariates.Ifwefindsuchadiscontinuity,ittypicallycastsdoubtontheassumptionsunderlyingtheRDdesign.
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A.Balancechecks• Lee(2008)usestheregressiondiscontinuitydesignto
estimatepartyincumbencyadvantageinU.S.Houseelections.DO VOTERS AFFECT OR ELECT POLICIES? 835
Democrat Vote Share at time t Democrat Vote Share at time t
.25 .5 .75 Democrat Vote Share at time t
.25 .5 .75 Democrat Vote Share at time t
Figure III
Similarity of Constituents' Characteristics in Bare Democrat and Republican Districts-Part 1
Panels refer to (from top left to bottom right) the following district character istics: real income, percentage with high-school degree, percentage black, percent age eligible to vote. Circles represent the average characteristic within intervals of 0.01 in Democrat vote share. The continuous line represents the predicted values from a fourth-order polynomial in vote share fitted separately for points above and below the 50 percent threshold. The dotted line represents the 95 percent confidence interval.
share. The coefficient reported in column (6) is the predicted difference at 50 percent. The table confirms that, for many ob servable characteristics, there is no significant difference in a close neighborhood of 50 percent. One important exception is the
percentage black, for which the magnitude of the discontinuity is
statistically significant.23 As a consequence, estimates of the coefficients in Table I from
regressions that include these covariates would be expected to
produce similar results?as in a randomized experiment?since
23. This is due to few outliers in the outer part of the vote share range. When the polynomial is estimated including only districts with vote share between 25 percent and 75 percent, the coefficients becomes insignificant. The gap for percent urban and open seats, while not statistically significant at the 5 percent level, is significant at the 10 percent level.
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A.Balancechecks• Lee(2008)usestheregressiondiscontinuitydesignto
estimatepartyincumbencyadvantageinU.S.Houseelections.836 QUARTERLY JOURNAL OF ECONOMICS
00 .25 .5 .75 .25 .5 .75 Democrat Vote Share at time t Democrat Vote Share at time t
Democrat Vote Share at time t Democrat Vote Share at time t
Figure IV
Similarity of Constituents' Characteristics in Bare Democrat and Republican Districts?Part 2
Panels refer to (from top left to bottom right) the following district character istics: voting population, North, South, West. Circles represent the average char acteristic within intervals of 0.01 in Democrat vote share. The continuous line represents the predicted values from a fourth-order polynomial in vote share fitted separately for points above and below the 50 percent threshold. The dotted line represents the 95 percent confidence interval.
all predetermined characteristics appear to be orthogonal to Dt. We have reestimated all the models in Table I conditioning on all
of the district characteristics in Table II, and found estimates that are virtually identical to the ones in Table I.
As a similar empirical test of our identifying assumption, in
Figure V we plot the ADA scores from the Congressional sessions that preceded the determination of the Democratic two-party vote share in election t. Since these past scores have already been determined by the time of the election, it is yet another predeter
mined characteristic (just like demographic composition, income
levels, etc.). If the RD design is valid, then we should observe no
discontinuity in these lagged ADA scores?just as we would ex
pect, in a randomized experiment, to see no systematic differ ences in any variables determined prior to the experiment. The
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A.Balancechecks
• Lee(2008)usestheregressiondiscontinuitydesigntoestimatepartyincumbencyadvantageinU.S.Houseelections.
• However …morequalificaitonssoon....
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B.Sorting/bunching/manipulation
• SubjectsorprogramadministratorsmayinvalidatethecontinuityassumptioniftheystrategicallymanipulateX tobejustaboveorbelowthecutoff.
• Thisisaconcernespeciallyiftheexactvalueofthecutoffisknowntothesubjectsinadvance.
• Thistypeofbehavior,ifitexists,maycreateadiscontinuityinthedistributionofX atthecutoff(i.e.,“bunching”totherightortotheleftofthecutoff)
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B.Manipulation• Ifindividualshavecontrolovertheassignmentvariable,thenweshould
expectthemtosortinto(outof)treatmentiftreatmentisdesirable(undesirable)– Thinkofameans-testedincomesupportprogram,oranelection– Thosejustabovethethresholdwillbeamixtureofthosewhowouldhave
passedandthosewhobarelyfailedwithoutmanipulation.
• Ifindividualshaveprecisecontrolovertheassignmentvariable,wewouldexpectthedensityofXtobezerojustbelowthethresholdbutpositivejustabovethethreshold(assumingthetreatmentisdesirable).– McCrary(2008)providesaformaltestformanipulationoftheassignment
variableinanRD.TheideaisthatthemarginaldensityofXshouldbecontinuouswithoutmanipulationandhencewelookfordiscontinuitiesinthedensityaroundthethreshold.
– HowprecisemustthemanipulationbeinordertothreatentheRDdesign?SeeLeeandLemieux(2010).
• ThismeansthatwhenyourunanRDyoumustknowsomethingaboutthemechanismgeneratingtheassignmentvariableandhowsusceptibleitcouldbetomanipulation
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B.Adiscontinuityinthedistributionoftheforcingvariable
McCrary(2007)suggeststestingthenullhypothesisofthecontinuityofthedensityofthecovariatethatunderliestheassignmentatthediscontinuitypoint,againstthealternativeofajumpinthedensityfunctionatthatpoint.
Again,inprinciple,thedesigndoesnotrequirecontinuityofthedensityofX atc,butadiscontinuityissuggestiveofviolationsoftheno-manipulationassumption.
IfinfactindividualspartlymanagetomanipulatethevalueofX inordertobeononesideoftheboundaryratherthantheother,onemightexpecttoseeadiscontinuityinthisdensityatthediscontinuitypoint.
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B.Exampleofmanipulation
• Anincomesupportprograminwhichthoseearningunder$14,000qualifyforsupport• SimulateddatafromMcCrary2008
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B.Discontinuityoftheforcingvariable(cont’d)
• Thedoctorrandomlyassignspatientstotwodifferentwaitingrooms,AandB,andplanstogivethoseinAthestatinandthoseinBtheplacebo.Ifsomeofthepatientslearnoftheplannedtreatmentassignmentmechanism,wewouldexpectthemtoproceedtowaitingroomA.
• WewouldexpectforwaitingroomAtobecomecrowded.• Intheregressiondiscontinuitycontext,thisisanalogousto
expectingtherunningvariabletobediscontinuousatthecutoff,withsurprisinglymanyindividualsjustbarelyqualifyingforadesirabletreatmentassignmentandsurprisinglyfewfailingtoquality.
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B.Discontinuityoftheforcingvariable(cont’d)
• Partialmanipulationoccurswhentherunningvariableisundertheagent’scontrol,butalsohasanidiosyncraticelement(e.g.,canmanipulatetestscore,butonlyimperfectly).
• Typically,partialmanipulationoftherunningvariabledoesnotleadtoidentificationproblems(analogoustofuzzyRD).
• Completemanipulationoccurswhentherunningvariableisentirelyundertheagent’scontrol.
• Typically,completemanipulationoftherunningvariabledoesleadtoidentificationproblems.
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B.Testofdiscontinuityoftheforcingvariable(cont’d)
• Thedensitytestmaynotbeinformativeunlesstheexistenceoftheprograminducesagentstoadjusttherunningvariableinonedirectiononly.– Intuition:Ifyouhavingsortinbothways,itcouldcancelout.
• Thedensitytestcouldalsofail,evenwhenthereisnofailureofidentification – butstilloftenausefultest.
Thetest:1. Estimateaveryunder-smoothedhistogram.Thebinsforthe
histogramaredefinedcarefullyenoughthatnoonehistogrambinincludespointsbothtotheleftandrightofthepointofdiscontinuity.
2. Estimatealocallinearsmoothingofthehistogram.Themidpointsofthehistogrambinsaretreatedasaregressor,andthenormalizedcountsofthenumberofobservationsfallingintothebinsaretreatedasanoutcomevariable.
3. Uselocallinearregressionestimatesfromstep2totestfordiscontinuity.
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B.Testofdiscontinuityoftheforcingvariable(cont’d)
Figure 4. Democratic Vote Share Relative to Cutoff:Popular Elections to the House of Representatives, 1900-1990
0
30
60
90
120
150
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
Democratic Margin
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0.20
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1.00
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Figure 5. Percent Voting Yeay:Roll Call Votes, U.S. House of Representatives, 1857-2004
0
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0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Percent Voting in Favor of Proposed Bill
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B.Testofdiscontinuityoftheforcingvariable(cont’d)
Figure 4. Democratic Vote Share Relative to Cutoff:Popular Elections to the House of Representatives, 1900-1990
0
30
60
90
120
150
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
Democratic MarginFr
eque
ncy
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0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
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Figure 5. Percent Voting Yeay:Roll Call Votes, U.S. House of Representatives, 1857-2004
0
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250
300
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Percent Voting in Favor of Proposed Bill
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RDD:Sorting/bunching(Camacho&Conover,2010)
Example:ManipulationofapovertyindexinColombia.Apovertyindexisusedtodecideeligibilityforsocialprograms.Thealgorithmtocreatethepovertyindexbecomespublicduringthesecondhalfof1997.
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C.Placebotests• Almondetal.(2010)useamedicaldefinitionof“verylowbirth
weight”<1500grams,toestimatetheeffectofadditionalmedicalcareonnewborns.
• Theyfindthatnewbornsjustbelowthe1500gramscutoffreceiveadditionaltreatmentandsurvivewithhigherprobabilitythannewbornsjustabovethecutoff.
• However,Barreca etal.(2010)findevidenceofnon-randomroundingat100-grammultiplesofbirthweight.
• Newbornsoflowsocioeconomicstatus,whotendtobelesshealthy,aredisproportionatelyrepresentedat100-grammultiples(balancecheck).
• Asaresult,newbornswithbirthweightsjustbeloworaboveeach100-multiplehavemore-favorablemortalityoutcomesthannewbornswithbirthweightsatthecutoffs.
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C.Placebotests(Barreca etal.,2010)2118 QUARTERLY JOURNAL OF ECONOMICS
FIGURE I
Means of Mortality Rates
Estimates are based on Vital Statistics Linked Birth and Infant Death Data,United States, 1983–2002 (not including 1992–1994). The lower panels of thisfigure (C, D) are disaggregated versions of ADKW’s Figure II.
numbers for convenience. In an effort to argue that the heapingaround the 1,500-g threshold is “not irregular” and hence not ofconcern, they argue that similar heaps are found around 1,400 gand 1,600 g where individuals would have no incentive to act ina strategic manner. Using McCrary’s (2008) estimation strategy,they also appeal to the lack of a statistically significant estimateof the discontinuity in the distribution.
Nevertheless, it turns out that the 1,500-g heap is irregular ina critical fashion. In particular, those at this data heap have sub-stantially higher mortality rates than surrounding observationson either side of the VLBW threshold. This feature of the data isdemonstrated in Figure I, in which we illustrate unadjusted meanmortality rates across the distribution of birth weights around1,500 g.1 In each of the four panels, documenting 24-hour through
1. Note that our Figure I is a disaggregated version of Figure II in ADKW.
at Acquisition D
ept Serials on March 1, 2012
http://qje.oxfordjournals.org/D
ownloaded from
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C.Discontinuitiesinaverageoutcomesatothervalues
TakingthesubsamplewithXi <c wecantestforajumpintheconditionalmeanoftheoutcomeatthemedianoftheforcingvariable.
Toimplementthetest,usethesamemethodforselectingthebandwidthasbefore.Alsoestimatethestandarderrorsofthejumpandusethistotestthehypothesisofazerojump.
RepeatthisusingthesubsampletotherightofthecutoffpointwithXi ≥ c.NowestimatethejumpintheregressionfunctionandatqX,1/2,r, andtestwhetheritisequaltozero.
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C.Discontinuitiesinaverageoutcomesatothervalues
ExamplefromDiNardo andLee(2008)FIGURE IIIa
Recognition, Subsequent Certification or Decertification, by Union Vote Share.
FIGURE IIIbContract Expiration Notice Filed, Prior to and Postcertification or
Decertification Election, by Union Vote ShareNote: Figure IIIa: Initial Elections that take place between 1984–1995, 21405
observations. Point estimates and standard errors (in parentheses) are from aregression of the dependent variable on a fourth-order polynomial and a certifi-cation status dummy variable. Figure IIIb: Post-: Elections take place (1984–1995), 21405 and 3785 for certification and decertification elections, respectively.Prior: Elections take place (1987–1999), 21457 and 3445 observations.
1407ECONOMIC IMPACTS OF NEW UNIONIZATION
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C.Discontinuitiesinaverageoutcomesatothervalues
ExamplefromDiNardo andLee(2008)
if the sampling process follows the familiar form of incidentalcensoring as in
!4"y* ! X# " D$ " εy ! y* ! 1%X& " D' " v # 0(,
where the outcome y* is only observed if the employer remains inbusiness. If (ε,v,X) is independent of D—as in a randomizedexperiment—and if there is no impact of unionization on survival(' ) 0), then there will be no sample selection bias.28 As arguedabove, unionization could be thought of as being randomly as-signed (among close elections), and Figure IV is consistent with azero impact on survival. In order to evaluate the plausibility of azero impact—compared with, for example, a *0.04 effect thatcannot be ruled out due to sampling error. Below, we present
28. As long as the impact of certification on survival is “monotonic,” theextent of the bias induced by analyzing a sample comprised solely of survivors isrelated to the extent of the differential survivor probability of near winners andnear losers. Since in our application, this difference is small, the extent of the biasis also necessarily small. See Lee [2002], for example.
FIGURE VLog(Sales) and Log(Sales/worker), by Union Vote Share
1411ECONOMIC IMPACTS OF NEW UNIONIZATION
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D.Bandwidthselectionandsensitivity
• Therearetwogeneralmethodsforselectionbandwidth– Adhoc,orsubstantivelyderived(e.g.,electionsbetween48-52%
are“close”)– Datadriven
• Wediscussbelow
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D.Bandwidthselectionandsensitivity(cont’d)
ForPolynomialRegression– Choosingtheorderofthepolynomialisanalogoustothechoiceof
bandwidth– Informalapproach:pickareasonablenumber(e.g.,4th order)– Twoapproaches
• UsetheAkaike informationcriterion(AIC)formodelselection:isthemeansquarederrorofthe
regressionandp isthenumberofmodelparameters• Selectanaturalsetofbins(asyouwouldforanRDgraph)andaddbindummiestothemodelandtesttheirjointsignificance.Addhigherordertermstothepolynomialuntilthebindummiesarenolongerjointlysignificant.– Thisalsoturnsouttobeatestforthepresenceofdiscontinuitiesintheregressionfunctionatpointsotherthanthecutoff,whichyou’llwanttodoanyway.
€
AIC = ln σ 2( ) + 2p, where ˆ σ 2
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D.Bandwidthselectionandsensitivity(cont’d)
ForLocalLinearRegressionbandwidthselectionrepresentsthefamiliartradeoffbetweenbiasandprecision• Whenthelocalregressionfunctionismoreorlesslinear,
thereisn’tmuchofatradeoffsobandwidthcanbelarger• Sopicka“reasonableh”.• Optimalbandwidthchoice:
– Theintuitionisthatyousetuptheobjectiveofminimizingthe(meansquared)errorbetweentheestimatedtreatmenteffectandactualtreatmenteffect.
– Thisgetsverytechnical.– ButthegoodnewsisthatthetwoStata commandsdoitforyou.– Imbens’codeathttp://users.nber.org/~rdehejia/!@$AEM/Topic%2007%20RD%20Advanced/rdob.ado givesyou
bandwidthchoiceusingrdob.– Alsotheprogramrd (ssc install rd)automaticallyusestheIK
optimalbandwidth.
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D.Bandwidthselectionandsensitivity(cont’d)
Inbothcases• Inpractice,youmaywanttofocusonresultsforthe“optimal”bandwidth,butit’simportanttotestforlotsofdifferentbandwidths.Thinkoftheoptimalbandwidthonlyasastartingpoint.
• Ifresultscriticallydependonaparticularbandwidth,theyarelesscredibleandchoiceofbandwidthrequiresasubstantivejustification.
• Inprinciple,theoptimalbandwidthfortestingdiscontinuitiesincovariatesmaynotbethesameastheoptimalbandwidthforthetreatment.Again,followthepracticeoftestingrobustnesstovariationsinbandwidth.
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E.FuzzyRDdesign• Cutoffdoesnotperfectlydeterminetreatmentbutcreatesadiscontinuity
intheprobabilityofreceivingthetreatment• Forexample:
• TheprobabilityofbeingofferedascholarshipmayjumpatacertainSATscore(abovewhichtheapplicationsaregiven“specialconsideration”)
• Incentivestoparticipateinaprogrammaychangediscontinuouslyatathreshold,butthechangeisnotpowerfulenoughtomoveallunitsfromnonparticipationtoparticipation
• Forunitsclosetothecutoffwecanuse
asaninstrumentforDi.• Weestimatetheeffectofthetreatmentforcompliers:thoseunits(close
tothediscontinuity,Xi ≅ c)whosetreatmentstatus,Di,dependsonZi.
!!!!
€
Zi =1 if Xi ≥ c !0 if Xi < c
#
$ %
& %
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E.FuzzyRDdesign• TheideaisthatforunitsthatareveryclosetothediscontinuityZi
canactasaninstrument• TheLATEparameteris:
or
• Thissuggests:1. RunasharpRDDforY2. RunasharpRDDforD3. Divideyourestimateinstep1byyourestimateinstep2
• Alternatively,runinstrumentalvariablesforthoseunitswithX≅ c
!!!!
€
limc−ε≤X≤c+ε
ε→0
E Y Z =1[ ] − E Y Z = 0[ ]E D Z =1[ ]− E D Z = 0[ ]&
'
( (
)
*
+ + ,
!!!!
€
limx↓c E Y X = x[ ]− limx↑c E Y X = x[ ]limx↓c E D X = x[ ]− limx↑c E D X = x[ ]
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F.Regressionkinkdesign• Insomesituationsatthecutoffitistheslopeofthetreatmentintensity
thatchanges,nottheleveloftreatmentassignment(0to1).• Classicexampleisunemploymentbenefitswhereyourbenefitisa
functionofpriorearnings.
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F.Regressionkinkdesign• Butthenyouexpectthattimetonextjobvarieswithbaseyearearnings
continuously(nojump),butwithachangeinslope.
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• Prisonsystemsinmanycountriessufferfromovercrowdingandhighrecidivismratesafterrelease
• Somecountriesuseearlydischargeofprisonersonelectronicmonitoring
• Difficulttoestimateimpactofearlyreleaseprogramonfuturecriminalbehavior:bestbehavedinmatesareusuallytheonestobereleasedearly
• Marie(2008)considerstheHomeDetentionCurfew(HDC)programinEnglandandWales
• ThisisafuzzyRDD:Onlyoffenderssentencedtomorethanthreemonth(88days)inprisonareeligibleforHDC,butnotallofthoseareofferedHDC
Earlyreleaseprogram(Marie,2009)
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Earlyreleaseprogram(Marie,2009)
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Earlyreleaseprogram(Marie,2009)
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Earlyreleaseprogram(Marie,2009)
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Earlyreleaseprogram(Marie,2009)
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“Regression-DiscontinuityDesignsandPopularElections:ImplicationsofPro-IncumbentBiasinCloseU.S.
HouseRaces”
byCaughey andSekhon (CS)
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Basicargument• “Closeelectionsarenotlikeotherelections”
– Strategicpoliticalactorshavestrongincentivestotargettheirresourceswheretheywillhavethegreatestmarginalimpact
• Thereisanincumbencyadvantageeveninverycloseelections– Theincumbentwinsdisproportionatelyandhasgreaterfinancial
resources
• Thisfinding,alongwithothercovariateimbalancesatthecutpoint,callsintoquestiontheLMBincumbencyadvantageresultsand,moregenerally,theassumptionthatoutcomesincloseelectionsare“asgoodasrandomlyassigned”– NotethatCScritiqueLee(2008),notLMB,buttheimplicationsforthe
incumbencyadvantageresultsinbothpapersarethesame
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TheLee(&McCrary)testsformanipulationFigure1:LocalfrequencycountsoftheDemocraticmargininU.S.Houseelections,1946-2008,withlocallinearestimateoverlaid.BandwidthswerechosenbythealgorithmproposedbyImbens andKalyanaraman (2009).
Agraphlike(A)ledLee,andseparatelyMcCrary,toconcludethatthereisnomanipulation.However,(B)and(C)begintosuggestanotherstory.Remember,theconcerniswiththeincumbentparty’svoteshare,nottheDemocraticvoteshare.
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DensityoftheassignmentvariableFigure2:Histogramoftheincumbentparty’smargininU.S.Houseelections,1946-2008.Thelocallinearestimateisbasedonatriangularkernelwithabandwidthof10.8,whichisoptimalaccordingtotheImbens-Kalyanaraman algorithm.Theestimateddiscontinuityatthecut-pointis9.5(SE =3.7).
KeyTakeaway:Thecandidateoftheincumbentpartyisaboutthreetimesmorelikelytowinelectionbyhalfapercentagepointorlessthantolosebyasimilarmargin.Thedensityofthisvariableappearstodivergeratherthanconvergeintheneighborhoodofthecut-point.
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CovariateimbalanceBasedoncorrectingsomeofLee’sdataandaddingsomenewvariables,CSfindsimbalanceatthecutoffinthefollowing:– Democraticmargininthepreviouselection– Theparties’relativecampaignexpenditures– 1st dimensionNOMINATEscoreofthecurrentincumbent– WhethertheDemocrat(Republican)candidateisthecurrentincumbent– NumberoftermstheDemocrat(Republican)hasservedintheU.S.
HouseofRepresentatives– WhethertheDemocrat(Republican)hasmorepoliticalexperiencethan
theRepublican(Democrat)– CongressionalQuarterly’sOctoberpredictionofwhichcandidatewill
wintherace
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Potentialmechanisms• Notlikelytobeoutrightfraud,becausesignificanceoflaggedvote
shareisincreasingovertimeandwebelievepotentialforfraudhasbeendecreasing.
• Controloverrecountsdoesnotappeartobethekeybecausetheyrarelyhappenandevenmorerarelychangetheoutcome.
• Butwedon’tneedanexplanationbasedonvotecounting.Differencesbetweenwinnersandlosersinincumbency,money,politicalexperience,andotherpre-electionresourcesareevidentfarbeforeanyvotesarecast,counted,ormanipulated.
• Thesedifferencescanbeseeninelectionsexpectedtobecloseexanteandinthosethatwereinfactdecidedbyanarrowmargin.
• Thesefactscontradicttheideathatresources,expectations,andallelseshouldbebalancedintheclosestelections.
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LessonsfromLMB&CS
• Thisisacautionarytale– LMBare very goodscholars.– Theydidalmosteverythingright.
• Theydonotdoalottojustifyfunctionalformorshowrobustnesstodifferentbandwidths.
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LessonsfromLMB&CS(cont’d)• Whatcanyoulearnfromthisexchange:
– Trytofindproblemsinyourdesignbeforesomeoneelsedoesitforyou
– Identifyandcollectaccuratedataontheobservablecovariatesmostlikelytorevealsortingatthecut-point.Thismaynotbethecovariatesthathappentobesittinginyourdataset.• Laggedvaluesofthetreatmentvariablearealwaysagoodidea.Inelections,thepartythatcurrentlycontrolstheoffice.
– Automatedbandwidthselectionalgorithmsdonotguaranteegoodresults.Theyarejustastartingpoint.
– ForRDpurposes,whatconstitutesa“close”electionappearstobecloserthanthe48-52%bandwidthwidelyuseduptonow.CSgetmostoftheirresultsusing49.5-50.5%.
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GuidetoPractice
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StepsforsharpRDanalysis
1. Graphthedatabycomputingtheaveragevalueoftheoutcomevariableoverasetofbins.– Thebinwidthhastobelargeenoughtohaveasufficientamountof
precisionsothattheplotslookssmoothoneithersideofthecutoffvalue,butatthesametimesmallenoughtomakethejumparoundthecutoffvalueclear.
2. Estimatethetreatmenteffectbyrunninglinearregressionsonbothsidesofthecutoffpoint.– Witharectangularkernel,thesearejuststandardregression
estimatedwithinabinofwidthh onbothsidesofthecutoffpoint.Notethat:Standarderrorscanbecomputedusingstandardleastsquaremethods(robuststandarderrors).Theoptimalbandwidthcanbechosenusingcrossvalidationorothermethods.
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StepsforsharpRDanalysis
3. Therobustnessoftheresultsshouldbeassessedbyemployingvariousspecificationtests.- Lookingatpossiblejumpsinthevalueofothercovariatesatthecutoff
point- Testingforpossiblediscontinuitiesintheconditionaldensityofthe
forcingvariable- Lookingwhethertheaverageoutcomeisdiscontinuousatothervalues
oftheforcingvariable- Usingvariousvaluesofthebandwidth,withandwithoutother
covariatesthatmaybeavailable.
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StepsforfuzzyRDanalysis
1. GraphtheaverageoutcomesoverasetofbinsasinthecaseofSRD,butalsographtheprobabilityoftreatment.
2. Estimatethetreatmenteffectusing2SLS,whichisnumericallyequivalenttocomputingtheratiointheestimateofthejump(atthecutoffpoint)intheoutcomevariableoverthejumpinthetreatmentvariable.
– Standarderrorscanbecomputedusingtheusual(robust)2SLSstandarderrors
– Theoptimalbandwidthcanagainbechosenusingoneofthemethodsdiscussedabove.
3. TherobustnessoftheresultscanbeassessedusingthevariousspecificationtestsmentionedinthecaseofSRDdesigns.
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EvaluatinganRDPaper(possiblyyourown)
• Doestheauthorshowconvincinglythat– Treatmentchangesdiscontinuouslyatthecutpoint– Outcomeschangediscontinuouslyatthecutpoint– Othercovariatesdonotchangediscontinuouslyatthecutpoint– Pretreatmentoutcomesdonotchangeatthecutpoint– Thereisnomanipulationoftheassignmentvariable(bunchingnear
thecutpoint)
• Arethebasicresultsevidentfromasimplegraph?
• Aretheresultsrobusttodifferentfunctionalformassumptionsabouttheassignmentvariable?– Forexample,parametricandnonparametricfits,differentbandwidths,
etc.
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EvaluatinganRDPaper(possiblyyourown)
• Couldotherpossiblyunobservedtreatmentschangediscontinuouslyatthecutoff(bundlingofinstitutions)?
– Forexample,18thbirthdaymarksadiscontinuouschangeineligibilitytovote,butalsoeligibilityfordraft,sentencingasanadult,andlotsofotherthings,whichmayormaynotberelevantdependingontheoutcomeinquestion
• Externalvalidity
– Arecasesnearthecutpoint differentfromcasesfarfromthecutpoint inotherways?Dothesedifferencesmakethemmoreorlessrelevantfromatheoreticalorpolicyperspective?
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ExamplesinSTATA