TY - JOUR
T1 - Minimum distance estimator for sharp regression discontinuity with multiple running variables
AU - Choi, Jin young
AU - Lee, Myoung jae
N1 - Funding Information:
The authors are grateful to a reviewer who provided detailed constructive comments. Myoung-jae Lee’s research has been supported by a Korea University Grant .
Publisher Copyright:
© 2017 Elsevier B.V.
PY - 2018/1
Y1 - 2018/1
N2 - In typical regression discontinuity, a running variable (or ‘score’) crosses a cutoff to determine a treatment. There are, however, many regression discontinuity cases where multiple scores have to cross all of their cutoffs to get treated. One approach to deal with these cases is one-dimensional localization using a single score on the subpopulation with all the other scores already crossing the cutoffs (“conditional one-dimensional localization approach, CON”), which is, however, inconsistent when partial effects are present which occur when some, but not all, scores cross their cutoffs. Another approach is multi-dimensional localization explicitly allowing for partial effects, which is, however, less efficient than CON due to more localizations than in CON. We propose a minimum distance estimator that is at least as efficient as CON, yet consistent even when partial effects are present. A simulation study demonstrates these characteristics of the minimum distance estimator.
AB - In typical regression discontinuity, a running variable (or ‘score’) crosses a cutoff to determine a treatment. There are, however, many regression discontinuity cases where multiple scores have to cross all of their cutoffs to get treated. One approach to deal with these cases is one-dimensional localization using a single score on the subpopulation with all the other scores already crossing the cutoffs (“conditional one-dimensional localization approach, CON”), which is, however, inconsistent when partial effects are present which occur when some, but not all, scores cross their cutoffs. Another approach is multi-dimensional localization explicitly allowing for partial effects, which is, however, less efficient than CON due to more localizations than in CON. We propose a minimum distance estimator that is at least as efficient as CON, yet consistent even when partial effects are present. A simulation study demonstrates these characteristics of the minimum distance estimator.
KW - Minimum distance estimator
KW - Multiple running variables
KW - Regression discontinuity
UR - http://www.scopus.com/inward/record.url?scp=85033576959&partnerID=8YFLogxK
U2 - 10.1016/j.econlet.2017.10.002
DO - 10.1016/j.econlet.2017.10.002
M3 - Article
AN - SCOPUS:85033576959
SN - 0165-1765
VL - 162
SP - 10
EP - 14
JO - Economics Letters
JF - Economics Letters
ER -