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Testing Identification Conditions of LATE in Fuzzy Regression Discontinuity Designs

Author

Listed:
  • Yu-Chin Hsu
  • Ji-Liang Shiu
  • Yuanyuan Wan
Abstract
This paper derives testable implications of the identifying conditions for the local average treatment effect (LATE) in fuzzy regression discontinuity (FRD) designs. Building upon the seminal work of Horowitz and Manski (1995), we show that the testable implications of these identifying conditions are a finite number of inequality restrictions on the observed data distribution. We then propose a specification test for the testable implications and show that the proposed test controls the size and is asymptotically consistent. We apply our test to the FRD designs used in Miller, Pinto, and Vera-Hernandez (2013) for Columbia’s insurance subsidy program, in Angrist and Lavy (1999) for Israel’s class size effect, in Pop-Eleches and Urquiola (2013) for Romanian school effect, and in Battistin, Brugiavini, Rettore, and Weber (2009) for the retirement effect on consumption.

Suggested Citation

  • Yu-Chin Hsu & Ji-Liang Shiu & Yuanyuan Wan, 2023. "Testing Identification Conditions of LATE in Fuzzy Regression Discontinuity Designs," Working Papers tecipa-761, University of Toronto, Department of Economics.
    • Handle: RePEc:tor:tecipa:tecipa-761
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    References listed on IDEAS

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    More about this item

    Keywords

    Fuzzy regression discontinuity design; Moment inequalities; Local continuity in means; Weighted bootstrap;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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