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Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015 Owen Ozier Development Research Group The World Bank 6 May 2015 Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 1 / 29

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Page 1: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression Discontinuity

World Bank SIEF / APHRCImpact Evaluation Training

2015

Owen OzierDevelopment Research Group

The World Bank

6 May 2015

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 1 / 29

Page 2: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

A precise rule based on a continuous characteristic determines participation in a program.

When do we see such rules? Here are five categories, but surely there are more:

Academic test scores: scholarships or prizes, higher education admission,certificates of merit

Poverty scores: (proxy-)means-tested anti-poverty programs

Land area: fertilizer program or debt relief initiative for owners of plots below acertain area

Date: age cutoffs for pensions; dates of birth for starting school with differentcohorts; date of loan to determine eligibility for debt relief

Elections: fraction that voted for a candidate of a particular party

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 2 / 29

Page 3: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

A precise rule based on a continuous characteristic determines participation in a program.

When do we see such rules? Here are five categories, but surely there are more:

Academic test scores: scholarships or prizes, higher education admission,certificates of merit

Poverty scores: (proxy-)means-tested anti-poverty programs

Land area: fertilizer program or debt relief initiative for owners of plots below acertain area

Date: age cutoffs for pensions; dates of birth for starting school with differentcohorts; date of loan to determine eligibility for debt relief

Elections: fraction that voted for a candidate of a particular party

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 2 / 29

Page 4: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

A precise rule based on a continuous characteristic determines participation in a program.

When do we see such rules? Here are five categories, but surely there are more:

Academic test scores: scholarships or prizes, higher education admission,certificates of merit

Poverty scores: (proxy-)means-tested anti-poverty programs

Land area: fertilizer program or debt relief initiative for owners of plots below acertain area

Date: age cutoffs for pensions; dates of birth for starting school with differentcohorts; date of loan to determine eligibility for debt relief

Elections: fraction that voted for a candidate of a particular party

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 2 / 29

Page 5: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

A precise rule based on a continuous characteristic determines participation in a program.

When do we see such rules? Here are five categories, but surely there are more:

Academic test scores: scholarships or prizes, higher education admission,certificates of merit

Poverty scores: (proxy-)means-tested anti-poverty programs

Land area: fertilizer program or debt relief initiative for owners of plots below acertain area

Date: age cutoffs for pensions; dates of birth for starting school with differentcohorts; date of loan to determine eligibility for debt relief

Elections: fraction that voted for a candidate of a particular party

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 2 / 29

Page 6: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

A precise rule based on a continuous characteristic determines participation in a program.

When do we see such rules? Here are five categories, but surely there are more:

Academic test scores: scholarships or prizes, higher education admission,certificates of merit

Poverty scores: (proxy-)means-tested anti-poverty programs

Land area: fertilizer program or debt relief initiative for owners of plots below acertain area

Date: age cutoffs for pensions; dates of birth for starting school with differentcohorts; date of loan to determine eligibility for debt relief

Elections: fraction that voted for a candidate of a particular party

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 2 / 29

Page 7: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

A precise rule based on a continuous characteristic determines participation in a program.

When do we see such rules? Here are five categories, but surely there are more:

Academic test scores: scholarships or prizes, higher education admission,certificates of merit

Poverty scores: (proxy-)means-tested anti-poverty programs

Land area: fertilizer program or debt relief initiative for owners of plots below acertain area

Date: age cutoffs for pensions; dates of birth for starting school with differentcohorts; date of loan to determine eligibility for debt relief

Elections: fraction that voted for a candidate of a particular party

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 2 / 29

Page 8: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea (“sharp”)Regression Discontinuity Design-Baseline

Not eligible

Eligible

Source: Gertler, P. J.; Martinez, S., Premand, P., Rawlings, L. B. and Christel M. J. Vermeersch, 2010, Impact Evaluation inPractice: Ancillary Material, The World Bank, Washington DC (www.worldbank.org/ieinpractice)

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 3 / 29

Page 9: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea (“sharp”)Regression Discontinuity Design-Post Intervention

IMPACT

Source: Gertler, P. J.; Martinez, S., Premand, P., Rawlings, L. B. and Christel M. J. Vermeersch, 2010, Impact Evaluation inPractice: Ancillary Material, The World Bank, Washington DC (www.worldbank.org/ieinpractice)

Note: Local Average Treatment Effect

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 4 / 29

Page 10: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea (“sharp”)Regression Discontinuity Design-Post Intervention

IMPACT

Source: Gertler, P. J.; Martinez, S., Premand, P., Rawlings, L. B. and Christel M. J. Vermeersch, 2010, Impact Evaluation inPractice: Ancillary Material, The World Bank, Washington DC (www.worldbank.org/ieinpractice)

Note: Local Average Treatment Effect

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 4 / 29

Page 11: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea (“sharp”)

0.2

.4.6

.81

Pro

babi

lity(

Tre

atm

ent )

-1 -.5 0 .5 1Running variable

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 5 / 29

Page 12: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea

5.9

66.

16.

26.

36.

4

-1 -.5 0 .5 1

Y axis: perhaps log earnings; X axis: perhaps qualification for labor market program

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 6 / 29

Page 13: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Regression discontinuity - basic idea (“fuzzy”)

0.2

.4.6

.81

Pro

babi

lity(

Tre

atm

ent )

-1 -.5 0 .5 1Running variable

Note: “Alwaystakers,” “Nevertakers,” “Compliers,” and the LATE

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 7 / 29

Page 14: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

History - Cook (2008)

“Several themes stand out in the half century of RDD’s history.One is its repeated independent discovery. ...

Campbell (1960; psychology / education) first named the designregression-discontinuity;

Goldberger (1972; economics) referred to it as deterministic selection on the covariate;

Sacks and Spiegelman (1977,78,80; statistics) studiously avoided naming it;

Rubin (1977; statistics) first wrote about it as part of a larger discussion of treatmentassignment based on the covariate;

Finkelstein et al (1996; biostatistics) called it the risk-allocation design;

and Trochim (1980; statistics) finished up calling it the cutoff-based design.”

But starting in the late 1990s, a large amount of research has appeared in economics.Some papers use the technique to find program impacts; others formalize details of themethodology.See Journal of Econometrics, 2008, Volume 142, Number 2 - special issue on RD.

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 8 / 29

Page 15: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

History - Cook (2008)

“Several themes stand out in the half century of RDD’s history.One is its repeated independent discovery. ...

Campbell (1960; psychology / education) first named the designregression-discontinuity;

Goldberger (1972; economics) referred to it as deterministic selection on the covariate;

Sacks and Spiegelman (1977,78,80; statistics) studiously avoided naming it;

Rubin (1977; statistics) first wrote about it as part of a larger discussion of treatmentassignment based on the covariate;

Finkelstein et al (1996; biostatistics) called it the risk-allocation design;

and Trochim (1980; statistics) finished up calling it the cutoff-based design.”

But starting in the late 1990s, a large amount of research has appeared in economics.Some papers use the technique to find program impacts; others formalize details of themethodology.See Journal of Econometrics, 2008, Volume 142, Number 2 - special issue on RD.

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 8 / 29

Page 16: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Time travel: back to 1960

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 9 / 29

Page 17: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Time travel: back to 1960

Observation: academically advanced scholarship winners have “intellectual” attitudes.

Are their attitudes changed by receiving the scholarship? (Is it a causal link?)

Outcome: scholarships

Outcome: attitudes

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 10 / 29

Page 18: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Time travel: back to 1960

Observation: academically advanced scholarship winners have “intellectual” attitudes.Are their attitudes changed by receiving the scholarship? (Is it a causal link?)

Outcome: scholarships

Outcome: attitudes

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 10 / 29

Page 19: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Time travel: back to 1960

Observation: academically advanced scholarship winners have “intellectual” attitudes.Are their attitudes changed by receiving the scholarship? (Is it a causal link?)

Outcome: scholarships

Outcome: attitudes

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 10 / 29

Page 20: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Time travel: back to 1960

Observation: academically advanced scholarship winners have “intellectual” attitudes.Are their attitudes changed by receiving the scholarship? (Is it a causal link?)

Outcome: scholarships

Outcome: attitudes

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 10 / 29

Page 21: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

Angrist and Pishke, Chapter 6, pp. 251-267

Treatment rule in sharp RD:

Di =

{1 if xi ≥ x0

0 if xi < x0(1)

Data generating process:

E [Y0i |xi ] = α + βxi (2)

Y1i = Y0i + ρ (3)

Regression equation:Yi = α + βxi + ρDi + ηi (4)

More general (possibly nonlinear) scenario:

Yi = f (xi ) + ρDi + ηi (5)

What do we do here?

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 11 / 29

Page 22: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

Angrist and Pishke, Chapter 6, pp. 251-267

Treatment rule in sharp RD:

Di =

{1 if xi ≥ x0

0 if xi < x0(1)

Data generating process:

E [Y0i |xi ] = α + βxi (2)

Y1i = Y0i + ρ (3)

Regression equation:Yi = α + βxi + ρDi + ηi (4)

More general (possibly nonlinear) scenario:

Yi = f (xi ) + ρDi + ηi (5)

What do we do here?

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 11 / 29

Page 23: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

Angrist and Pishke, Chapter 6, pp. 251-267

Treatment rule in sharp RD:

Di =

{1 if xi ≥ x0

0 if xi < x0(1)

Data generating process:

E [Y0i |xi ] = α + βxi (2)

Y1i = Y0i + ρ (3)

Regression equation:Yi = α + βxi + ρDi + ηi (4)

More general (possibly nonlinear) scenario:

Yi = f (xi ) + ρDi + ηi (5)

What do we do here?

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 11 / 29

Page 24: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

Angrist and Pishke, Chapter 6, pp. 251-267

Treatment rule in sharp RD:

Di =

{1 if xi ≥ x0

0 if xi < x0(1)

Data generating process:

E [Y0i |xi ] = α + βxi (2)

Y1i = Y0i + ρ (3)

Regression equation:Yi = α + βxi + ρDi + ηi (4)

More general (possibly nonlinear) scenario:

Yi = f (xi ) + ρDi + ηi (5)

What do we do here?

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 11 / 29

Page 25: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

Angrist and Pishke, Chapter 6, pp. 251-267

Treatment rule in sharp RD:

Di =

{1 if xi ≥ x0

0 if xi < x0(1)

Data generating process:

E [Y0i |xi ] = α + βxi (2)

Y1i = Y0i + ρ (3)

Regression equation:Yi = α + βxi + ρDi + ηi (4)

More general (possibly nonlinear) scenario:

Yi = f (xi ) + ρDi + ηi (5)

What do we do here?

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 11 / 29

Page 26: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

Angrist and Pishke, Chapter 6, pp. 251-267

Treatment rule in sharp RD:

Di =

{1 if xi ≥ x0

0 if xi < x0(1)

Data generating process:

E [Y0i |xi ] = α + βxi (2)

Y1i = Y0i + ρ (3)

Regression equation:Yi = α + βxi + ρDi + ηi (4)

More general (possibly nonlinear) scenario:

Yi = f (xi ) + ρDi + ηi (5)

What do we do here?

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 11 / 29

Page 27: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

We can (locally) approximate any smooth function:

Yi = f (xi ) + ρDi + ηi (6)

Substitute:f (xi ) ≈ α + β1xi + β2x

2i + ...+ βpx

pi (7)

And thus:Yi = α + β1xi + β2x

2i + ...+ βpx

pi + ρDi + ηi (8)

But because the smooth function may behave differently on either side of the cutoff, wewill expand on this. First, transform xi notationally (and for ease of regression). Let

x̃i = xi − x0 (9)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 12 / 29

Page 28: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

We can (locally) approximate any smooth function:

Yi = f (xi ) + ρDi + ηi (6)

Substitute:f (xi ) ≈ α + β1xi + β2x

2i + ...+ βpx

pi (7)

And thus:Yi = α + β1xi + β2x

2i + ...+ βpx

pi + ρDi + ηi (8)

But because the smooth function may behave differently on either side of the cutoff, wewill expand on this. First, transform xi notationally (and for ease of regression). Let

x̃i = xi − x0 (9)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 12 / 29

Page 29: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

We can (locally) approximate any smooth function:

Yi = f (xi ) + ρDi + ηi (6)

Substitute:f (xi ) ≈ α + β1xi + β2x

2i + ...+ βpx

pi (7)

And thus:Yi = α + β1xi + β2x

2i + ...+ βpx

pi + ρDi + ηi (8)

But because the smooth function may behave differently on either side of the cutoff, wewill expand on this. First, transform xi notationally (and for ease of regression). Let

x̃i = xi − x0 (9)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 12 / 29

Page 30: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

We can (locally) approximate any smooth function:

Yi = f (xi ) + ρDi + ηi (6)

Substitute:f (xi ) ≈ α + β1xi + β2x

2i + ...+ βpx

pi (7)

And thus:Yi = α + β1xi + β2x

2i + ...+ βpx

pi + ρDi + ηi (8)

But because the smooth function may behave differently on either side of the cutoff, wewill expand on this. First, transform xi notationally (and for ease of regression). Let

x̃i = xi − x0 (9)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 12 / 29

Page 31: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

We can (locally) approximate any smooth function:

Yi = f (xi ) + ρDi + ηi (6)

Substitute:f (xi ) ≈ α + β1xi + β2x

2i + ...+ βpx

pi (7)

And thus:Yi = α + β1xi + β2x

2i + ...+ βpx

pi + ρDi + ηi (8)

But because the smooth function may behave differently on either side of the cutoff, wewill expand on this. First, transform xi notationally (and for ease of regression). Let

x̃i = xi − x0 (9)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 12 / 29

Page 32: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formallyAngrist and Pishke, Chapter 6, pp. 251-267

Then, allowing different trends (and indeed, completely different polynomials) on eitherside of the cutoff (with and without the program), we can write the conditionalexpectation functions:

E [Y0i ] = f0(xi ) = α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi (10)

E [Y1i ] = f1(xi ) = α + ρ+ β11x̃i + β12x̃2i + ...+ β1p x̃

pi (11)

And because Di is a deterministic function of xi (this is important for writing theconditional expectation):

E [Yi |Xi ] = E [Y0i ] + (E [Y1i ]− E [Y0i ])Di (12)

So, substituting in for the regression equation, we can define β∗ = β1 − β0, and write:

Yi =α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi + (13)

ρDi + β∗1 Di x̃i + β∗2 Di x̃2i + ...+ β∗p x̃

pi + ηi (14)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 13 / 29

Page 33: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formallyAngrist and Pishke, Chapter 6, pp. 251-267

Then, allowing different trends (and indeed, completely different polynomials) on eitherside of the cutoff (with and without the program), we can write the conditionalexpectation functions:

E [Y0i ] = f0(xi ) = α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi (10)

E [Y1i ] = f1(xi ) = α + ρ+ β11x̃i + β12x̃2i + ...+ β1p x̃

pi (11)

And because Di is a deterministic function of xi (this is important for writing theconditional expectation):

E [Yi |Xi ] = E [Y0i ] + (E [Y1i ]− E [Y0i ])Di (12)

So, substituting in for the regression equation, we can define β∗ = β1 − β0, and write:

Yi =α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi + (13)

ρDi + β∗1 Di x̃i + β∗2 Di x̃2i + ...+ β∗p x̃

pi + ηi (14)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 13 / 29

Page 34: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formallyAngrist and Pishke, Chapter 6, pp. 251-267

Then, allowing different trends (and indeed, completely different polynomials) on eitherside of the cutoff (with and without the program), we can write the conditionalexpectation functions:

E [Y0i ] = f0(xi ) = α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi (10)

E [Y1i ] = f1(xi ) = α + ρ+ β11x̃i + β12x̃2i + ...+ β1p x̃

pi (11)

And because Di is a deterministic function of xi (this is important for writing theconditional expectation):

E [Yi |Xi ] = E [Y0i ] + (E [Y1i ]− E [Y0i ])Di (12)

So, substituting in for the regression equation, we can define β∗ = β1 − β0, and write:

Yi =α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi + (13)

ρDi + β∗1 Di x̃i + β∗2 Di x̃2i + ...+ β∗p x̃

pi + ηi (14)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 13 / 29

Page 35: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formallyAngrist and Pishke, Chapter 6, pp. 251-267

Then, allowing different trends (and indeed, completely different polynomials) on eitherside of the cutoff (with and without the program), we can write the conditionalexpectation functions:

E [Y0i ] = f0(xi ) = α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi (10)

E [Y1i ] = f1(xi ) = α + ρ+ β11x̃i + β12x̃2i + ...+ β1p x̃

pi (11)

And because Di is a deterministic function of xi (this is important for writing theconditional expectation):

E [Yi |Xi ] = E [Y0i ] + (E [Y1i ]− E [Y0i ])Di (12)

So, substituting in for the regression equation, we can define β∗ = β1 − β0, and write:

Yi =α + β01x̃i + β02x̃2i + ...+ β0p x̃

pi + (13)

ρDi + β∗1 Di x̃i + β∗2 Di x̃2i + ...+ β∗p x̃

pi + ηi (14)

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 13 / 29

Page 36: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

But this can all really be simplified in many practical cases. For small values of ∆:

E [Yi |x0 −∆ < xi < x0] ≈ E [Y0i |xi = x0] (15)

E [Yi |x0 ≤ xi < x0 + ∆] ≈ E [Y1i |xi = x0] (16)

and then, in the most extreme case:

lim∆→0

E [Yi |x0 ≤ xi < x0 + ∆]− E [Yi |x0 −∆ < xi < x0] = E [Y1i − Y0i |xi = x0] (17)

So the difference in means in an extremely (vanishingly!) narrow band on each side ofthe cutoff might be enough to estimate the effect of the program, ρ.

In practice, usually include linear terms and use a narrow region around the cutoff.Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 14 / 29

Page 37: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

But this can all really be simplified in many practical cases. For small values of ∆:

E [Yi |x0 −∆ < xi < x0] ≈ E [Y0i |xi = x0] (15)

E [Yi |x0 ≤ xi < x0 + ∆] ≈ E [Y1i |xi = x0] (16)

and then, in the most extreme case:

lim∆→0

E [Yi |x0 ≤ xi < x0 + ∆]− E [Yi |x0 −∆ < xi < x0] = E [Y1i − Y0i |xi = x0] (17)

So the difference in means in an extremely (vanishingly!) narrow band on each side ofthe cutoff might be enough to estimate the effect of the program, ρ.

In practice, usually include linear terms and use a narrow region around the cutoff.Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 14 / 29

Page 38: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

But this can all really be simplified in many practical cases. For small values of ∆:

E [Yi |x0 −∆ < xi < x0] ≈ E [Y0i |xi = x0] (15)

E [Yi |x0 ≤ xi < x0 + ∆] ≈ E [Y1i |xi = x0] (16)

and then, in the most extreme case:

lim∆→0

E [Yi |x0 ≤ xi < x0 + ∆]− E [Yi |x0 −∆ < xi < x0] = E [Y1i − Y0i |xi = x0] (17)

So the difference in means in an extremely (vanishingly!) narrow band on each side ofthe cutoff might be enough to estimate the effect of the program, ρ.

In practice, usually include linear terms and use a narrow region around the cutoff.Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 14 / 29

Page 39: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

But this can all really be simplified in many practical cases. For small values of ∆:

E [Yi |x0 −∆ < xi < x0] ≈ E [Y0i |xi = x0] (15)

E [Yi |x0 ≤ xi < x0 + ∆] ≈ E [Y1i |xi = x0] (16)

and then, in the most extreme case:

lim∆→0

E [Yi |x0 ≤ xi < x0 + ∆]− E [Yi |x0 −∆ < xi < x0] = E [Y1i − Y0i |xi = x0] (17)

So the difference in means in an extremely (vanishingly!) narrow band on each side ofthe cutoff might be enough to estimate the effect of the program, ρ.

In practice, usually include linear terms and use a narrow region around the cutoff.

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 14 / 29

Page 40: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

But this can all really be simplified in many practical cases. For small values of ∆:

E [Yi |x0 −∆ < xi < x0] ≈ E [Y0i |xi = x0] (15)

E [Yi |x0 ≤ xi < x0 + ∆] ≈ E [Y1i |xi = x0] (16)

and then, in the most extreme case:

lim∆→0

E [Yi |x0 ≤ xi < x0 + ∆]− E [Yi |x0 −∆ < xi < x0] = E [Y1i − Y0i |xi = x0] (17)

So the difference in means in an extremely (vanishingly!) narrow band on each side ofthe cutoff might be enough to estimate the effect of the program, ρ.

In practice, usually include linear terms and use a narrow region around the cutoff.Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 14 / 29

Page 41: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).Again, as in IV: Exclusion restriction, standard errorsAngrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 42: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).

Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).Again, as in IV: Exclusion restriction, standard errorsAngrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 43: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).Again, as in IV: Exclusion restriction, standard errorsAngrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 44: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).Again, as in IV: Exclusion restriction, standard errorsAngrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 45: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).

Again, as in IV: Exclusion restriction, standard errorsAngrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 46: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).Again, as in IV: Exclusion restriction, standard errors

Angrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 47: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

RD, a little more formally

What if the assignment rule is discontinuous, but does not completely determinetreatment status?

Prob(Di = 1|xi ) =

{g1(xi ) if xi ≥ x0

g0(xi ) if xi < x0,whereg1(x0) 6= g0(x0) (18)

We need a different notation for being on the left or the right of the cutoff, now that Di

doesn’t jump from zero to one. Let Ti = 1(xi ≥ x0).Now, following the equations in the text, we arrive at two (piecewise) polynomialapproximations:

Yi = µ+ κ1xi + κ2x2i + ...+ κpx

pi + πρTi + ζ2i (19)

Di = γ0 + γ1xi + γ2x2i + ...+ γpx

pi + πTi + ζ1i (20)

So to estimate ρ, we use instrumental variables, and in essence divide the coefficientestimate on Ti in the “first stage” regression (variations on Equation 20) by thecoefficient estimage on Ti in the “reduced form” regression (variations on Equation 19).Again, as in IV: Exclusion restriction, standard errorsAngrist and Pishke, Chapter 6, pp. 251-267

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 15 / 29

Page 48: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Practical considerations

Five basic issues are highlighted by Guido Imbens and Thomas Lemieux in their paper,Regression discontinuity designs: A guide to practice:

Visualization

Specification: polynomial order, “kernel”

Bandwidth

Standard errors (confidence interval)

Specification tests: density, covariates, other jumps

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 16 / 29

Page 49: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Practical considerations

Five basic issues are highlighted by Guido Imbens and Thomas Lemieux in their paper,Regression discontinuity designs: A guide to practice:

Visualization

Specification: polynomial order, “kernel”

Bandwidth

Standard errors (confidence interval)

Specification tests: density, covariates, other jumps

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 16 / 29

Page 50: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Practical considerations

Five basic issues are highlighted by Guido Imbens and Thomas Lemieux in their paper,Regression discontinuity designs: A guide to practice:

Visualization

Specification: polynomial order, “kernel”

Bandwidth

Standard errors (confidence interval)

Specification tests: density, covariates, other jumps

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 16 / 29

Page 51: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Practical considerations

Five basic issues are highlighted by Guido Imbens and Thomas Lemieux in their paper,Regression discontinuity designs: A guide to practice:

Visualization

Specification: polynomial order, “kernel”

Bandwidth

Standard errors (confidence interval)

Specification tests: density, covariates, other jumps

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 16 / 29

Page 52: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Practical considerations

Five basic issues are highlighted by Guido Imbens and Thomas Lemieux in their paper,Regression discontinuity designs: A guide to practice:

Visualization

Specification: polynomial order, “kernel”

Bandwidth

Standard errors (confidence interval)

Specification tests: density, covariates, other jumps

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 16 / 29

Page 53: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Practical considerations

Five basic issues are highlighted by Guido Imbens and Thomas Lemieux in their paper,Regression discontinuity designs: A guide to practice:

Visualization

Specification: polynomial order, “kernel”

Bandwidth

Standard errors (confidence interval)

Specification tests: density, covariates, other jumps

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 16 / 29

Page 54: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Manipulation of the running variable

What if the population of potential program participantsis able to precisely influence the running variable,and knows the program assignment rule?

Example from Camacho and Conover (2011) in Colombia:program rule became known in 1997;watch what happens.

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 17 / 29

Page 55: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Manipulation of the running variable

What if the population of potential program participantsis able to precisely influence the running variable,and knows the program assignment rule?

Example from Camacho and Conover (2011) in Colombia:program rule became known in 1997;watch what happens.

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 17 / 29

Page 56: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

ent

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5

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Perc

ent

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ent

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0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 18 / 29

Page 57: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

ent

6

5

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0

Perc

ent

6

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Perc

ent

6

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0

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ent

6

5

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1

0

Perc

ent

6

5

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2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 19 / 29

Page 58: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

ent

6

5

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0

Perc

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Perc

ent

6

5

4

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1

0

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 20 / 29

Page 59: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

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0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 21 / 29

Page 60: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

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ent

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5

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0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 22 / 29

Page 61: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

ent

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Perc

ent

6

5

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1

0

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 23 / 29

Page 62: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

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6

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Perc

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6

5

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2

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0

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 24 / 29

Page 63: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

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Perc

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Perc

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6

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6

5

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2

1

0

Perc

ent

6

5

4

3

2

1

0

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 25 / 29

Page 64: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

4

3

2

1

0

Perc

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0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 26 / 29

Page 65: Regression Discontinuity World Bank SIEF / APHRC Impact Evaluation Training 2015pubdocs.worldbank.org/en/663221440083705317/08... · Impact Evaluation Training 2015 Owen Ozier Development

Poverty score distribution - Camacho and Conover (2011) in Colombia

VOL. 3 NO. 2 43CAMACHO AND CONOVER: MANIPULATION OF SOCIAL PROGRAM ELIGIBILITY

Figure 1. Poverty Index Score Distribution 1994–2003, Algorithm Disclosed in 1997

Notes: Each !gure corresponds to the interviews conducted in a given year, restricting the sample to urban house-holds living in strata levels below four. The vertical line indicates the eligibility threshold of 47 for many social programs.

Perc

ent

1994 1995

1996 1997

1998 1999

2000 2001

2002 2003

6

5

4

3

2

1

0

Perc

ent

6

5

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0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score0 7 14 21 28 35 42 49 56 63 70 77 84 91 98

Poverty index score

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 27 / 29

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An example

Owen Ozier (The World Bank) Regression Discontinuity 6 May 2015 28 / 29