Regression Discontinuity Design, Measurement Error

Author
Abstract

Identification in a regression discontinuity (RD) design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known threshold. If the assignment variable is measured with error, however, the discontinuity in the first stage 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 challenge to treatment effect identification. This paper provides sufficient conditions for identification when only the mismeasured assignment variable, the treatment status and the outcome variable are observed. 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.

Year of Publication
2016
Number
606
Date Published
10/2016
Publication Language
eng
Citation Key
9826
Pei, Z., & Shen, Y. (2016). The Devil is in the Tails: Regression Discontinuity Design with Measurement Error in the Assignment Variable. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01t148fk62z (Original work published October 2016)
Working Papers