Regression Discontinuity with Integer Score and Non-Integer Cutoff

Myoung Jae Lee, Hyae Chong Shim, Sang Soo Park

Research output: Journal PublicationArticlepeer-review

Abstract

In regression discontinuity (RD), the treatment is determined by a continuous score G crossing a cutoff c or not. However, often G is observed only as the ‘rounded-down integer S’ (e.g., birth year observed instead of birth time), and c is not an integer. In this case, the “cutoff sample” (i.e., the observations with S equal to the rounded-down integer of c) is discarded due to the ambiguity in G crossing c or not. We show that, first, if the usual RD estimators are used with the integer nature of S ignored, then a bias occurs, but it becomes zero if a slope symmetry condition holds or if c takes a certain “middle” value. Second, the distribution of the measurement error e = G-S can be specified and tested for, and if the distribution is accepted, then the cutoff sample can be used fruitfully. Third, two-step estimators and bootstrap inference are available in the literature, but a single-step ordinary least squares or instrumental variable estimator is enough. We also provide a simulation study and an empirical analysis for a dental support program based on age in South Korea.

Original languageEnglish
Pages (from-to)73-101
Number of pages29
JournalKorean Economic Review
Volume39
Issue number1
DOIs
Publication statusPublished - 2023
Externally publishedYes

Keywords

  • Integer Running Variable
  • Non-integer Cutoff
  • Regression Discontinuity

ASJC Scopus subject areas

  • General Economics,Econometrics and Finance

Fingerprint

Dive into the research topics of 'Regression Discontinuity with Integer Score and Non-Integer Cutoff'. Together they form a unique fingerprint.

Cite this