Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions

Andrew C. Eggers, Ronny Freier, Veronica Grembi, Tommaso Nannicini

Publikation: Working paperForskning

Resumé

In many countries, important features of municipal government (such as the electoral system, mayors' salaries, and the number of councillors) depend on whether the municipality is above or below arbitrary population thresholds. Several papers have used a regression discontinuity design (RDD) to measure the effects of these threshold-based policies on political and economic outcomes. Using evidence from France, Germany, and Italy, we highlight two common pitfalls that arise in exploiting population-based policies (confounded treatment and sorting) and we provide guidance for detecting and addressing these pitfalls. Even when these problems are present, population-threshold RDD may be the best available research design for studying the effects of certain policies and political institutions.
OriginalsprogEngelsk
Udgivelses stedBerlin
UdgiverDeutsches Institut für Wirtschaftsforschung
Antal sider49
StatusUdgivet - 2015
NavnDiscussion Papers, Deutsches Institut für Wirtschaftsforschung (DIW Berlin)
Nummer1503
ISSN1433-0210

Emneord

  • Regression discontinuity design
  • Causal inference
  • Sorting
  • Population thresholds
  • Institutional design

Citer dette

Eggers, A. C., Freier, R., Grembi, V., & Nannicini, T. (2015). Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions. Berlin: Deutsches Institut für Wirtschaftsforschung. Discussion Papers, Deutsches Institut für Wirtschaftsforschung (DIW Berlin), Nr. 1503
Eggers, Andrew C. ; Freier, Ronny ; Grembi, Veronica ; Nannicini, Tommaso. / Regression Discontinuity Designs Based on Population Thresholds : Pitfalls and Solutions. Berlin : Deutsches Institut für Wirtschaftsforschung, 2015. (Discussion Papers, Deutsches Institut für Wirtschaftsforschung (DIW Berlin); Nr. 1503).
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Eggers, AC, Freier, R, Grembi, V & Nannicini, T 2015 'Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions' Deutsches Institut für Wirtschaftsforschung, Berlin.

Regression Discontinuity Designs Based on Population Thresholds : Pitfalls and Solutions. / Eggers, Andrew C.; Freier, Ronny; Grembi, Veronica ; Nannicini, Tommaso.

Berlin : Deutsches Institut für Wirtschaftsforschung, 2015.

Publikation: Working paperForskning

TY - UNPB

T1 - Regression Discontinuity Designs Based on Population Thresholds

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AU - Grembi, Veronica

AU - Nannicini, Tommaso

PY - 2015

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N2 - In many countries, important features of municipal government (such as the electoral system, mayors' salaries, and the number of councillors) depend on whether the municipality is above or below arbitrary population thresholds. Several papers have used a regression discontinuity design (RDD) to measure the effects of these threshold-based policies on political and economic outcomes. Using evidence from France, Germany, and Italy, we highlight two common pitfalls that arise in exploiting population-based policies (confounded treatment and sorting) and we provide guidance for detecting and addressing these pitfalls. Even when these problems are present, population-threshold RDD may be the best available research design for studying the effects of certain policies and political institutions.

AB - In many countries, important features of municipal government (such as the electoral system, mayors' salaries, and the number of councillors) depend on whether the municipality is above or below arbitrary population thresholds. Several papers have used a regression discontinuity design (RDD) to measure the effects of these threshold-based policies on political and economic outcomes. Using evidence from France, Germany, and Italy, we highlight two common pitfalls that arise in exploiting population-based policies (confounded treatment and sorting) and we provide guidance for detecting and addressing these pitfalls. Even when these problems are present, population-threshold RDD may be the best available research design for studying the effects of certain policies and political institutions.

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KW - Institutional design

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KW - Causal inference

KW - Sorting

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KW - Institutional design

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Eggers AC, Freier R, Grembi V, Nannicini T. Regression Discontinuity Designs Based on Population Thresholds: Pitfalls and Solutions. Berlin: Deutsches Institut für Wirtschaftsforschung. 2015.