Bookmark and Share

Notice: On March 31, it was announced that Statalist is moving from an email list to a forum. The old list will shut down on April 23, and its replacement, statalist.org is already up and running.


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: st: Regression Discontinuity, with treatment effects that vary with an endogenous covariate?


From   Austin Nichols <austinnichols@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: Regression Discontinuity, with treatment effects that vary with an endogenous covariate?
Date   Sat, 3 Jul 2010 09:42:23 -0400

The RD design uses the jump in expected benefits at the tenure cutoff
to identify a causal effect at one particular value of tenure; if
there were a jump also in prior earnings at that cutoff, it would
invalidate the design.  So, no, you can't include an interaction.
Also note that Stata has no -rd- command (ssc describe rd).

On Sat, Jul 3, 2010 at 5:13 AM, Jen Zhen <jenzhen99@gmail.com> wrote:
> Dear Statalisters,
>
> I would like to estimate the treatment effect on unemployment duration
> of receiving a lump-sum cash transfer.
> The individuals in my dataset receive some dollar amount iff their
> tenure exceeds some threshold value, so I considered using a
> Regression Discontinuity Design.
>
> One issue though is that the amount is the same regardless of
> individuals' prior monthly earnings, however my intuition tells me
> that, if there is an effect, its size should depend on prior earnings,
> with the effect being larger the more earnings months are being
> replaced by the payment, i.e. the lower prior monthly earnings. Prior
> earnings are of course an endogenous variable.
>
> So I am wondering whether it would make sense to use a RD design, and
> add to the treatment dummy for being above the threshold also an
> interaction of that dummy with prior earnings, so as to allow the
> treatment effect to vary (presumably negatively) with prior wages?
> If so, is there a way to do this using Stata's -rd- command?
>
> Any advice is much appreciated.
>
> Thanks and best regards,
> JZ
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/


© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   Site index