A Practical Introduction to Regression Discontinuity Designs: Extensions

The authors provide an accessible and practical guide for the analysis and interpretation of Regression Discontinuity (RD) designs, focusing on extensions to the canonical sharp RD setup, including local randomization, fuzzy RD, discrete scores, and multi-dimensional RD designs.

Format: Hardback
Length: 122 pages
Publication date: 11 April 2024
Publisher: Cambridge University Press

In this Element, which continues our discussion in Foundations, the authors provide an accessible and practical guide for the analysis and interpretation of Regression Discontinuity (RD) designs that encourages the use of a common set of practices and facilitates the accumulation of RD-based empirical evidence. The focus is on extensions to the canonical sharp RD setup that we discussed in Foundations. The discussion covers (i) the local randomization framework for RD analysis, (ii) the fuzzy RD design where compliance with treatment is imperfect, (iii) RD designs with discrete scores, and (iv) and multi-dimensional RD designs.

The local randomization framework for RD analysis is introduced, which allows for the estimation of treatment effects in the presence of spatial heterogeneity. The fuzzy RD design is discussed, where compliance with treatment is imperfect, and the authors propose a method to address this issue. RD designs with discrete scores are explored, and the use of latent variables to account for the ordinal nature of the scores is demonstrated. Multi-dimensional RD designs are also considered, where the treatment effect varies across multiple dimensions.

The authors emphasize the importance of considering the potential biases and limitations of RD designs, such as selection bias and the inability to control for unobserved confounders. They provide guidance on how to address these issues through careful design and analysis. The Element concludes with a discussion of the potential applications of RD designs in various fields, such as education, health, and labor economics.

Overall, this Element provides a comprehensive and up-to-date introduction to RD designs, making it an invaluable resource for researchers and practitioners interested in applying this approach to empirical analysis.

ISBN-13: 9781009462327