20 Regression Discontinuity

20 Regression Discontinuity - Regression Discontinuity...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Regression Discontinuity Introductory Econometrics Douglas G. Steigerwald UC Santa Barbara March 2006 D. Steigerwald (UCSB) Regression Discontinuity 03/06 1 / 11 Intuition Reference: Mostly Harmless Econometrics Chapter 6 Rule leads to identi&cation Are National Merit Scholars more likely to go to graduate school? D. Steigerwald (UCSB) Regression Discontinuity 03/06 2 / 11 Intuition Reference: Mostly Harmless Econometrics Chapter 6 Rule leads to identi&cation Are National Merit Scholars more likely to go to graduate school? Rule: Award Scholarship if (PSAT) score & c D. Steigerwald (UCSB) Regression Discontinuity 03/06 2 / 11 Intuition Reference: Mostly Harmless Econometrics Chapter 6 Rule leads to identi&cation Are National Merit Scholars more likely to go to graduate school? Rule: Award Scholarship if (PSAT) score & c Compare: students with score just below c to students with score just above c D. Steigerwald (UCSB) Regression Discontinuity 03/06 2 / 11 Sharp Discontinuity De&nition D i treatment for observation i D i = & 1 if x i & x 0 if x i < x x known threshold D i deterministic function of x i D i discontinuous function of x i Example: D i = 1 if i received scholarship x i score for i x threshold (rule) for awarding scholarship D. Steigerwald (UCSB) Regression Discontinuity 03/06 3 / 11 Constant Mean Model Outcome - attending graduate school Treatment - receiving scholarship Y i outcome without treatment Y 1 i outcome with treatment To measure impact: compare means for two groups D. Steigerwald (UCSB) Regression Discontinuity 03/06 4 / 11 Constant Mean Model Outcome - attending graduate school Treatment - receiving scholarship Y i outcome without treatment Y 1 i outcome with treatment To measure impact: compare means for two groups E [ Y i ] = E [ Y 1 i ] = + D. Steigerwald (UCSB) Regression Discontinuity 03/06 4 / 11 Constant Mean Model Outcome - attending graduate school Treatment - receiving scholarship Y i outcome without treatment Y 1 i outcome with treatment To measure impact: compare means for two groups E [ Y i ] = E [ Y 1 i ] = + H : = H 1 : > D. Steigerwald (UCSB) Regression Discontinuity 03/06 4 / 11 Constant Mean Model Outcome - attending graduate school Treatment - receiving scholarship Y i outcome without treatment Y 1 i outcome with treatment To measure impact: compare means for two groups E [ Y i ] = E [ Y 1 i ] = + H : = H 1 : > Y 1 & Y D. Steigerwald (UCSB) Regression Discontinuity 03/06 4 / 11 Constant Mean Model Outcome - attending graduate school Treatment - receiving scholarship Y i outcome without treatment Y 1 i outcome with treatment To measure impact: compare means for two groups E [ Y i ] = E [ Y 1 i ] = + H : = H 1 : > Y 1 & Y Issue: no individual is in both groups D. Steigerwald (UCSB) Regression Discontinuity 03/06 4 / 11 Constant Mean Model Outcome - attending graduate school Treatment - receiving scholarship Y i outcome without treatment Y 1 i...
View Full Document

Page1 / 47

20 Regression Discontinuity - Regression Discontinuity...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online