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Research ArticleArticle

An Economic Approach to Generalizing Findings from Regression-Discontinuity Designs

Nirav Mehta
Published online before print August 03, 2018, 1115-7497R2; DOI: https://doi.org/10.3368/jhr.54.4.1115.7497R2
Nirav Mehta
*Nirav Mehta is an assistant professor in the Department of Economics, University of Western Ontario. Email: .
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Abstract

Regression-discontinuity (RD) designs estimate treatment effects only around a cutoff. This paper shows what can be learned about average treatment effects for the treated (ATT), untreated (ATUT), and population (ATE) if the cutoff was chosen to maximize the net gain from treatment. Without capacity constraints, the RD estimate bounds the ATT from below and the ATUT from above, implying bounds for the ATE, and optimality of the cutoff rules out constant treatment effects. Bounds are typically looser if the capacity constraint binds. Testable implications of cutoff optimality are derived. The results are demonstrated using previous RD studies.

JEL codes
  • C14
  • C21
  • C25
  • I2
  • J01

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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An Economic Approach to Generalizing Findings from Regression-Discontinuity Designs
Nirav Mehta
Journal of Human Resources Aug 2018, 1115-7497R2; DOI: 10.3368/jhr.54.4.1115.7497R2

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An Economic Approach to Generalizing Findings from Regression-Discontinuity Designs
Nirav Mehta
Journal of Human Resources Aug 2018, 1115-7497R2; DOI: 10.3368/jhr.54.4.1115.7497R2
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Keywords

  • C14
  • C21
  • C25
  • I2
  • J01
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