Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions
Andrew C. Eggers,
Veronica Grembi and
Tommaso Nannicini ()
No 1503, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research
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.
New Economics Papers: this item is included in nep-pbe
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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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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp1503
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