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The Devil is in the Tails: Regression Discontinuity Design with Measurement Error in the Assignment Variable

Zhuan Pei and Yi Shen

A chapter in Regression Discontinuity Designs, 2017, vol. 38, pp 455-502 from Emerald Group Publishing Limited

Abstract: Identification in a regression discontinuity (RD) design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known threshold. If the assignment variable is measured with error, however, the discontinuity in the relationship between the probability of treatment and the observed mismeasured assignment variable may disappear. Therefore, the presence of measurement error in the assignment variable poses a challenge to treatment effect identification. This chapter provides sufficient conditions to identify the RD treatment effect using the mismeasured assignment variable, the treatment status and the outcome variable. We prove identification separately for discrete and continuous assignment variables and study the properties of various estimation procedures. We illustrate the proposed methods in an empirical application, where we estimate Medicaid takeup and its crowdout effect on private health insurance coverage.

Keywords: C10; C18; Regression discontinuity design; measurement error (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: The Devil is in the Tails: Regression Discontinuity Design with Measurement Error in the Assignment Variable (2016) Downloads
Working Paper: The Devil is in the Tails: Regression Discontinuity Design with Measurement Error in the Assignment Variable (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aecozz:s0731-905320170000038019

DOI: 10.1108/S0731-905320170000038019

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