Campus Units

Economics

Document Type

Book Chapter

Publication Version

Published Version

Publication Date

2017

Journal or Book Title

Regression Discontinuity Designs: Theory and Applications

Editors

Matias D. Cattaneo and Juan Carlos Escanciano

Publisher

Emerald Publishing Limited

Place of Publication

United Kingdom

First Page or Article ID Number

218

Last Page

240

Abstract

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.

JEL Classification

C13, C14, C21

Comments

This chapter is published as Bartalotti, Otávio, and Quentin Brummet. "Regression discontinuity designs with clustered data." In Regression Discontinuity Designs: Theory and Applications, pp. 218-240. Emerald Publishing Limited, 2017.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

Working Paper

Included in

Econometrics Commons

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