Arbeitspapier
The Devil is in the Tails: Regression Discontinuity Design with Measurement Error in the Assignment Variable
Identification in a regression discontinuity (RD) design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known threshold. If the assignment variable is measured with error, however, the discontinuity in the first stage relationship between the probability of treatment and the observed mismeasured assignment variable may disappear. Therefore, the presence of measurement error in the assignment variable poses a challenge to treatment effect identification. This paper provides sufficient conditions for identification when only the mismeasured assignment variable, the treatment status and the outcome variable are observed. We prove identification separately for discrete and continuous assignment variables and study the properties of various estimation procedures. We illustrate the proposed methods in an empirical application, where we estimate Medicaid takeup and its crowdout effect on private health insurance coverage.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 10320
- Classification
-
Wirtschaft
Econometric and Statistical Methods and Methodology: General
Methodological Issues: General
- Subject
-
regression discontinuity design
measurement error
- Event
-
Geistige Schöpfung
- (who)
-
Pei, Zhuan
Shen, Yi
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Pei, Zhuan
- Shen, Yi
- Institute for the Study of Labor (IZA)
Time of origin
- 2016
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