Unlocking the Power of Regression Discontinuity Designs in Economics
The article explains how Regression Discontinuity (RD) designs are used in economics research. It discusses the theory behind RD, when it is valid or invalid, and why it is considered a quasi-experimental design. Different methods of estimating RD designs are summarized, along with their pros and cons. The limitations of interpreting these estimates are also highlighted. Examples from empirical research are used to illustrate these concepts.