Regression Discontinuity Design

5 important questions on Regression Discontinuity Design

When can the RD design be used?

If treatment assignment mechanism is a function of the observable variables.

What is the difference between a Fuzzy RD and a Sharp RD?

Di does not jump from zeto to one at Xi = c, but there is a smaller jump in the probability of treatment.
Discontinuity becomes an IV for treatment status instead of deterministically switching treatment on or off.

What does Fuzzy RD measure?

The LATE, the effect on compliers at cutoff point.
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What are the assumptions for Fuzzy RD?

1. Potential outcomes are continuous at cutoff point.
2. There is a discontinuity in treatment.

Regression second stage Fuzzy RD

Yi = alpha + beta(Xi-c) + gamma*Di*(Xi-c) + delta*Di + epsilon_i

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