Journal or Book Title
Regression Discontinuity Designs: Theory and Applications
Matias D. Cattaneo and Juan Carlos Escanciano
Emerald Publishing Limited
Place of Publication
First Page or Article ID Number
Regression discontinuity designs have become popular in empirical studies due to their attractive properties for estimating causal effects under transparent assumptions. Nonetheless, most popular procedures assume i.i.d. data, which is unreasonable in many common applications. To fill this gap, we derive the properties of traditional local polynomial estimators in a fixed- setting that allows for cluster dependence in the error term. Simulation results demonstrate that accounting for clustering in the data while selecting bandwidths may lead to lower MSE while maintaining proper coverage. We then apply our cluster-robust procedure to an application examining the impact of Low-Income Housing Tax Credits on neighborhood characteristics and low-income housing supply.
C13, C14, C21
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Bartalotti, Otávio and Brummet, Quentin, "Regression Discontinuity Designs with Clustered Data" (2017). Economics Publications. 658.