Bounds on Treatment Effects in Regression Discontinuity Designs with a Manipulated Running Variable / François Gerard, Miikka Rokkanen, Christoph Rothe.

Format:

Book

Author/Creator:

Gerard, François.

Contributor:

National Bureau of Economic Research.

Rokkanen, Miikka.

Rothe, Christoph.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22892.

NBER working paper series no. w22892

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

The key assumption in regression discontinuity analysis is that the distribution of potential outcomes varies smoothly with the running variable around the cutoff. In many empirical contexts, however, this assumption is not credible; and the running variable is said to be manipulated in this case. In this paper, we show that while causal effects are not point identified under manipulation, they remain partially identified under a general model that covers a wide range of empirical patterns. We derive sharp bounds on causal parameters for both sharp and fuzzy designs under our general model, and show how additional structure can be used to further narrow the bounds. We use our methods to study the disincentive effect of unemployment insurance on (formal) reemployment in Brazil, and show that our bounds remain informative, despite the fact that manipulation has a sizable effect on our estimates of causal parameters.

Notes:

Print version record

December 2016.