Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145281
Authors: 
Kolesár, Michal
Rothe, Christoph
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9990
Abstract: 
We consider inference in regression discontinuity designs when the running variable only takes a moderate number of distinct values. In particular, we study the common practice of using confidence intervals (CIs) based on standard errors that are clustered by the running variable. We derive theoretical results and present simulation and empirical evidence showing that these CIs have poor coverage properties and therefore recommend that they not be used in practice. We also suggest alternative CIs with guaranteed coverage properties under easily interpretable restrictions on the conditional expectation function.
Subjects: 
regression discontinuity design
discrete running variable
clustered standard errors
JEL: 
C13
C14
C21
C25
Document Type: 
Working Paper

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