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Testing monotonicity of conditional treatment effects under regression discontinuity designs

Yu-Chin Hsu () and Shu Shen

Journal of Applied Econometrics, 2021, vol. 36, issue 3, 346-366

Abstract: Researchers are often interested in the relationship between treatment effects and observed individual heterogeneity. This paper proposes the first nonparametric monotonicity test for conditional treatment effects under the popular regression discontinuity framework. The proposed test examines whether the average treatment effect or the local average treatment effect has a monotonic relationship with some of the observed individual characteristics. We show consistency and asymptotic uniform size control of the proposed test, and apply the test to study treatment effect heterogeneity in two empirical settings.

Date: 2021
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