Regression Discontinuity Design, Probit/logit models

4 important questions on Regression Discontinuity Design, Probit/logit models

Name the 3 requirements for RDD mentioned in the slides

1. You need a continuous running variable
2. You need a way to split the group (treatment assignment rule)
3. No manipulation (bunching)

Provide a simple definition of fuzzy regression discontinuity

When treatment can be received by crossing the threshold, but its not the only way

Provide the definition (more formal) of Sharp and Fuzzy RD

Sharp: when the threshold shifts treatment probability from 0 to 1

Fuzzy when the threshold shift is not from 0 to 1 (but somewhere in between)
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Provide the 3 scenarios that could lead to a Fuzzy RD

  • The rules on who gets treatment and who doesn’t is not always followed strictly

  • Treatment is optional (“threshold might only induce ‘encouragement’ to take treatment”

  • Those that should get treatment have the choice to reject treatment (how is this different from point 2?)

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