In fuzzy regression discontinuity with a running/forcing variable S and a cutoff c, the identified treatment effect is the ‘effect on compliers at S=c’. This well-known ‘local average treatment effect (LATE)’ interpretation requires (i) a monotonicity condition and (ii) the independence of the potential treatment and potential response variables from S. These assumptions can be violated, however, particularly (ii) when S affects potential variables, which can easily happen in practice. In this paper, we weaken both assumptions so that LATE in fuzzy regression discontinuity has a better chance to hold in the real world, and practitioners can claim their findings in fuzzy regression discontinuity to be LATE.
Bibliographical noteFunding Information:
The authors are grateful to a reviewer for the helpful comments. The research of Myoung-jae Lee has been supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea ( NRF-2017S1A5A2A01025897 ).
© 2018 Elsevier B.V.
- Fuzzy regression discontinuity
- Local average treatment effect
- Moment continuity
- Monotonicity condition
ASJC Scopus subject areas
- Economics and Econometrics