Article ID Journal Published Year Pages File Type
11023396 Economics Letters 2018 4 Pages PDF
Abstract
In fuzzy regression discontinuity with a running/forcing variable S and a cutoff c, the identified treatment effect is the 'effect on compliers at S=c'. This well-known 'local average treatment effect (LATE)' interpretation requires (i) a monotonicity condition and (ii) the independence of the potential treatment and potential response variables from S. These assumptions can be violated, however, particularly (ii) when S affects potential variables, which can easily happen in practice. In this paper, we weaken both assumptions so that LATE in fuzzy regression discontinuity has a better chance to hold in the real world, and practitioners can claim their findings in fuzzy regression discontinuity to be LATE.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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