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Placebo Discontinuity Design

Rahul Singh, Moses Stewart

arXiv 16 Jul 2025 · Econometrics

arXiv:2507.12693 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Standard regression discontinuity design (RDD) models rely on the continuity of expected potential outcomes at the cutoff. The standard continuity assumption can be violated by strategic manipulation of the running variable, which is realistic when the cutoff is widely known and when the treatment of interest is a social program or government benefit. In this work, we identify the treatment effect despite such a violation, by leveraging a placebo treatment and a placebo outcome. We introduce a local instrumental variable estimator. Our estimator decomposes into two terms: the standard RDD estimator of the target outcome's discontinuity, and a new adjustment term based on the placebo outcome's discontinuity. We show that our estimator is consistent, and we justify a robust bias-corrected inference procedure. Our method expands the applicability of RDD to settings with strategic behavior around the cutoff, which commonly arise in social science.

Citation extraction

28
references
53
in-text mentions
28
distinct cited
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9,459
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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
1Lee, D. S. and Lemieux, T (2010) Regression discontinuity designs in economics0.92843100%
2Calonico, S., Cattaneo, M. D., and Titiunik, R (2014) Robust Nonparametric Confidence Intervals for Regression-Discontinuity Designs0.8435360%
3Hahn, J., Todd, P., and Van der Klaauw, W (2001) Identification and estimation of treatment effects with a regression-discontinuity design0.7948550%
4Calonico, S., Cattaneo, M. D., Farrell, M. H., and Titiunik, R (2019) Regression Discontinuity Designs Using Covariates0.7946350%
5Fan, J. and Gijbels, I (1992) Variable Bandwidth and Local Linear Regression Smoothers0.73732100%
6Cattaneo, M. D., Idrobo, N., and Titiunik, R (2024) A Practical Introduction to Regression Discontinuity Designs0.64422100%
7Imbens, G. W. and Lemieux, T (2008) Regression discontinuity designs: A guide to practice0.64422100%
8Tchetgen Tchetgen, E. J., Ying, A., Cui, Y., Shi, X., and Miao, W (2024) An introduction to proximal causal inference0.64422100%
9Angrist, J. D., Lavy, V., Leder-Luis, J., and Shany, A (2019) Maimonides' Rule Redux0.51121100%
10Abdulkadiroǧlu, A., Angrist, J. D., Narita, Y., Pathak, P. A., and Z… (2017) Regression Discontinuity in Serial Dictatorship: Achievement Effects at Chicago's Exam Schools0.40511100%

Showing the top 10 of 28 scored citations.