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An Economic Approach to Generalizing Findings from Regression-Discontinuity Designs

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  • Nirav Mehta

Abstract

Regression-discontinuity (RD) designs estimate treatment effects only around a cutoff. This paper shows what can be learned about average treatment effects for the treated (ATT), untreated (ATUT), and population (ATE) if the cutoff was chosen to maximize the net gain from treatment. Without capacity constraints, the RD estimate bounds the ATT from below and the ATUT from above, implying bounds for the ATE, and optimality of the cutoff rules out constant treatment effects. Bounds are typically looser if the capacity constraint binds. Testable implications of cutoff optimality are derived. The results are demonstrated using previous RD studies.

Suggested Citation

  • Nirav Mehta, 2019. "An Economic Approach to Generalizing Findings from Regression-Discontinuity Designs," Journal of Human Resources, University of Wisconsin Press, vol. 54(4), pages 953-985.
    • Handle: RePEc:uwp:jhriss:v:54:y:2019:i:4:p:953-985
    Note: DOI: 10.3368/jhr.54.4.1115.7497R2
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    Cited by:

    1. Mario Fiorini & Katrien Stevens, 2021. "Scrutinizing the Monotonicity Assumption in IV and fuzzy RD designs," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(6), pages 1475-1526, December.

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I2 - Health, Education, and Welfare - - Education
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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