Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions

Andrew C. Eggers, Ronny Freier, Veronica Grembi and Tommaso Nannicini

No 1503, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: In many countries, important features of municipal government (such as the electoral system, mayors' salaries, and the number of councillors) depend on whether the municipality is above or below arbitrary population thresholds. Several papers have used a regression discontinuity design (RDD) to measure the effects of these threshold-based policies on political and economic outcomes. Using evidence from France, Germany, and Italy, we highlight two common pitfalls that arise in exploiting population-based policies (confounded treatment and sorting) and we provide guidance for detecting and addressing these pitfalls. Even when these problems are present, population-threshold RDD may be the best available research design for studying the effects of certain policies and political institutions.

Keywords: regression discontinuity design; causal inference; sorting; population thresholds, institutional design (search for similar items in EconPapers)
JEL-codes: H10 H19 H70 H77 (search for similar items in EconPapers)
Pages: 49 p.
Date: 2015
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions (2018)
Working Paper: Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions (2015)
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