Fuzzy difference in discontinuities

Jaime Millán-Quijano

Applied Economics Letters, 2020, vol. 27, issue 19, 1552-1555

Abstract: This paper discusses the conditions needed to estimate the local average treatment effect (LATE) of a policy using the ‘difference-in-discontinuities’ method while considering imperfect compliance. I show that simple and plausible assumptions about the participation and effects of the confounding existing policies allow the identification of the causal effect of a new policy. Identification is feasible even when information about the participation in other confounding policies is not available.

Date: 2020
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DOI: 10.1080/13504851.2019.1696930

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