Score: 2

PLRD: Partially Linear Regression Discontinuity Inference

Published: March 12, 2025 | arXiv ID: 2503.09907v1

By: Aditya Ghosh, Guido Imbens, Stefan Wager

BigTech Affiliations: Stanford University

Potential Business Impact:

Makes study results more trustworthy and accurate.

Business Areas:
A/B Testing Data and Analytics

Regression discontinuity designs have become one of the most popular research designs in empirical economics. We argue, however, that widely used approaches to building confidence intervals in regression discontinuity designs exhibit suboptimal behavior in practice: In a simulation study calibrated to high-profile applications of regression discontinuity designs, existing methods either have systematic under-coverage or have wider-than-necessary intervals. We propose a new approach, partially linear regression discontinuity inference (PLRD), and find it to address shortcomings of existing methods: Throughout our experiments, confidence intervals built using PLRD are both valid and short. We also provide large-sample guarantees for PLRD under smoothness assumptions.

Country of Origin
🇺🇸 United States

Page Count
40 pages

Category
Economics:
Econometrics