Relaxing conditions for local average treatment effect in fuzzy regression discontinuity
- Authors
- Choi, Jin-Young; Lee, Myoung-jae
- Issue Date
- 12월-2018
- Publisher
- ELSEVIER SCIENCE SA
- Keywords
- Fuzzy regression discontinuity; Local average treatment effect; Monotonicity condition; Moment continuity
- Citation
- ECONOMICS LETTERS, v.173, pp.47 - 50
- Indexed
- SSCI
SCOPUS
- Journal Title
- ECONOMICS LETTERS
- Volume
- 173
- Start Page
- 47
- End Page
- 50
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/71330
- DOI
- 10.1016/j.econlet.2018.09.010
- ISSN
- 0165-1765
- 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. (C) 2018 Elsevier B.V. All rights reserved.
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