Empirical likelihood for regression discontinuity design

Otsu, Taisuke ORCID: 0000-0002-2307-143X, Matsushita, Yukitoshi and Xu, Ke-Li (2014) Empirical likelihood for regression discontinuity design. . Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

This paper proposes empirical likelihood based inference methods for causal effects identified from regression discontinuity designs. We consider both the sharp and fuzzy regression discontinuity designs and treat the regression functions as nonparametric. The proposed inference procedures do not require asymptotic variance estimation and the confidence sets have natural shapes, unlike the conventional Wald-type method. These features are illustrated by simulations and an empirical example which evaluates the effect of class size on pupils’ scholastic achievements. Furthermore, for the sharp regression discontinuity design, we show that the empirical likelihood statistic admits a higher-order refinement, so-called the Bartlett correction. Bandwidth selection methods are also discussed.

Item Type:	Monograph (Report)
Additional Information:	© 2014 The Authors
Divisions:	STICERD
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	21 Jul 2014 15:59
Last Modified:	01 Nov 2024 05:05
Projects:	SES-0720961
Funders:	National Science Foundation
URI:	http://eprints.lse.ac.uk/id/eprint/58065

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