Faculty of Economics and Business Administration Publications Database

Relaxing Conditions for Local Average Treatment Effect in Fuzzy Regression Discontinuity

Lee, Myoung-Jae
Volume: 173
Pages: 47 - 50
ISSN-Print: 0165-1765
Link External Source: Online Version
Year: 2018
Keywords: Fuzzy regression discontinuity, Local average treatment effect, Monotonicity condition, Moment continuity

In fuzzy regression discontinuity with a running/forcing variable and a cutoff , the identified treatment effect is the ‘effect on compliers at ’. This well-known ‘local average treatment effect (LATE)’ interpretation requires (i) a monotonicity condition and (ii) the independence of the potential treatment and potential response variables from . These assumptions can be violated, however, particularly (ii) when affects potential variables, which can easily happen in practice. In this paper, we weaken both assumptions so that LATE in fuzzy regression discontinuity has a better chance to hold in the real world, and practitioners can claim their findings in fuzzy regression discontinuity to be LATE.