Start studying
Module 11 · Causal Inference Module contents
Module 11  ·  Card 12 / 13advanced

Regression Discontinuity

Regression discontinuity estimates an effect when a treatment is given to everyone above a cut-off on some score.

Units just above and just below the cut-off are nearly identical, so a jump in outcomes at the cut-off shows the effect.

For example, if students scoring 70 or more get a scholarship, comparing those on 69 and 71 isolates the scholarship's effect.

It needs units to be unable to place themselves precisely on one side of the cut-off, or the comparison breaks down.

The estimate applies to units near the cut-off and may not hold for those far from it.

Learn in depth ↓
Module 11 · Causal Inference · 13 concepts
In depth  /  15 lines

Regression Discontinuity, in more detail

Regression discontinuity uses rules that switch treatment on at a cut-off to estimate causal effects.

Such rules are everywhere: exam pass marks, age limits, income thresholds and credit score cut-offs.

The design works because units just either side of a cut-off are nearly the same in every way except treatment.

The running variable is the score that decides treatment, such as an exam mark.

Outcomes are plotted against the running variable, and a line is fitted on each side of the cut-off.

The size of the jump between the 2 lines at the cut-off is the estimated effect.

A narrow window around the cut-off gives fairer comparisons but fewer data points.

A wide window gives more data but relies more on the fitted lines having the right shape.

Manipulation is the main threat, such as markers nudging scores of 69 up to 70.

A pile-up of units just above the cut-off in a histogram is the usual sign of manipulation.

Other characteristics, such as age or past marks, should not jump at the cut-off, which offers a check on the design.

In fuzzy designs the cut-off changes the chance of treatment rather than fixing it, and an instrumental variable estimate is used.

The estimate applies near the cut-off, so it says little about units far from it.

In practice it is among the most trusted designs without random assignment, because its assumptions can be checked visually.

The usual mistake is fitting curves that bend sharply near the cut-off, which can invent or hide a jump.

Want the full technical article? Wikipedia ↗
Test yourself

One question on this card. Every option explains itself once you pick, right or wrong.

Question 1
Students scoring 70 or more get a scholarship. Why compare students on 69 with students on 71?
Causal Inference

13 concepts in this module, then a graded test with every answer explained.

Study this module →
↑↓ move↵ openesc close