Abstract
In regression discontinuity (RD) with a running variable S crossing a known cutoff c, an unexpectedly small break magnitude is due to S being a mis-measured version of the genuine running variable G. Has all been lost, and is RD useless when G≠S? This paper proves three things. First, when P(G=S)=0, nonparametric RD identification fails. Second, when P(G=S)>0, although the usual RD effect on the margin E(·|G=c) is not nonparametrically identified, the "effect on the truthful margin"E(·|G=S=c) is. Third, under a no-selection-problem assumption, the effect on the truthful margin becomes the effect on the margin; the no-selection-problem assumption is unnecessary, as long as the effect on the truthful margin is taken as a parameter of interest.
| Original language | English |
|---|---|
| Article number | 20150017 |
| Journal | Journal of Econometric Methods |
| Volume | 6 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2017 |
Bibliographical note
Funding Information:This research has been supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2014S1A5B1014360). This research has been also partially funded by a Korea University Grant.
Publisher Copyright:
© 2017 Walter de Gruyter GmbH, Berlin/Boston 2017.
Keywords
- identification
- measurement error
- regression discontinuity
- sample selection
ASJC Scopus subject areas
- Statistics and Probability
- Economics and Econometrics
- Applied Mathematics