EconBase
← All papers

Difference-in-Discontinuities: Estimation, Inference and Validity Tests

Pedro Picchetti, Cristine C. X. Pinto, Stephanie T. Shinoki

arXiv 28 May 2024 · Econometrics · 1 citations (OpenAlex)

arXiv:2405.18531 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper investigates the econometric theory behind the newly developed difference-in-discontinuities design (DiDC). Despite its increasing use in applied research, there are currently limited studies of its properties. The method combines elements of regression discontinuity (RDD) and difference-in-differences (DiD) designs, allowing researchers to eliminate the effects of potential confounders at the discontinuity. We formalize the difference-in-discontinuity theory by stating the identification assumptions and proposing a nonparametric estimator, deriving its asymptotic properties and examining the scenarios in which the DiDC has desirable bias properties when compared to the standard RDD. We also provide comprehensive tests for one of the identification assumption of the DiDC. Monte Carlo simulation studies show that the estimators have good performance in finite samples. Finally, we revisit Grembi et al. (2016), that studies the effects of relaxing fiscal rules on public finance outcomes in Italian municipalities. The results show that the proposed estimator exhibits substantially smaller confidence intervals for the estimated effects.

Citation extraction

27
references
67
in-text mentions
27
distinct cited
0
self-citations
12,176
main-text words

appendix boundary found by appendix_command · 53% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Grembi, Veronica and Nannicini, Tommaso and Troiano, Ugo (2016) Do Fiscal Rules Matter?0.97413692%
2Calonico, Sebastian and Cattaneo, Matias D. and Titiunik, Rocio (2014) Robust Nonparametric Confidence Intervals for Regression-Discontinuity Designs0.82218656%
3Hahn, Jinyong and Todd, Petra and Klaauw, Wilbert (2001) Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design0.73732100%
4Fang, Zheng and Santos, Andres (2018) Inference on Directionally Differentiable Functions0.6443267%
5Sant’Anna, Pedro H.C. and Zhao, Jun (2020) Doubly robust difference-in-differences estimators0.64422100%
6Ludwig, J. and Miller, D. L (2007) Does Head Start Improve Children's Life Chances? Evidence from a Regression Discontinuity Design0.5112250%
7Albright, Alex (2024) The Hidden Effects of Algorithmic Recommendations0.51121100%
8Azuaga, Feliciano L and Sampaio, Breno (2017) Violência Contra Mulher: O Impacto da Lei Maria da Penha sobre o Feminicídio no Brasil0.51121100%
9Chicoine, Luke E (2017) Homicides in Mexico and the expiration of the U.S. federal assault weapons ban: a difference-in-discontinuities approach0.51121100%
10Leventer, Dor and Nevo, Daniel (2025) Correcting invalid regression discontinuity designs with multiple time period data0.51121100%

Showing the top 10 of 27 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Correcting invalid regression discontinuity designs with multiple time period data0.73732
2Difference-in-differences with as few as two cross-sectional units – A new perspective to the democracy–growth debate0.00021