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

2016/09/06 by Zhuan Pei, Yi Shen, Pei, Zhuan +1 · 1 citation
Economics, Econometrics and Finance · Mathematics · #Advanced Causal Inference Techniques #FOS: Computer and information sciences #Health Systems, Economic Evaluations, Quality of Life #Healthcare Policy and Management #Methodology (stat.ME)

paper · pdf · doi:10.48550/arxiv.1609.01396

openalex publication_date 2016/09/06 · openalex created_date 2021/02/01 · openalex updated_date 2026/07/28

Abstract

Identification in a regression discontinuity (RD) research design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known threshold. When 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 direct challenge to treatment effect identification. This paper 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.

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