Local Composite Quantile Regression for Regression Discontinuity

Department

Economics, Finance and Quantitative Analysis

Document Type

Article

Publication Date

1-1-2021

Abstract

We introduce the local composite quantile regression (LCQR) to causal inference in regression discontinuity (RD) designs. Kai, Li and Zou study the efficiency property of LCQR, while we show that its nice boundary performance translates to accurate estimation of treatment effects in RD under a variety of data generating processes. Moreover, we propose a bias-corrected and standard error-adjusted t-test for inference, which leads to confidence intervals with good coverage probabilities. A bandwidth selector is also discussed. For illustration, we conduct a simulation study and revisit a classic example from Lee. A companion R package rdcqr is developed.

Journal Title

Journal of Business and Economic Statistics

Journal ISSN

07350015

Digital Object Identifier (DOI)

10.1080/07350015.2021.1990072

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