Wild bootstrap for fuzzy regression discontinuity designs: obtaining robust bias-corrected confidence intervals
Author(s) -
Yang He,
Otávio Bartalotti
Publication year - 2020
Publication title -
econometrics journal
Language(s) - English
Resource type - Journals
eISSN - 1368-423X
pISSN - 1368-4221
DOI - 10.1093/ectj/utaa002
Subject(s) - confidence interval , statistics , robust confidence intervals , econometrics , regression , computer science , cluster analysis , complement (music) , endogeneity , regression discontinuity design , mathematics , biochemistry , chemistry , complementation , gene , phenotype
This paper develops a novel wild bootstrap procedure to construct robust bias-corrected (RBC) valid confidence intervals (CIs) for fuzzy regression discontinuity designs, providing an intuitive complement to existing RBC methods. The CIs generated by this procedure are valid under conditions similar to the procedures proposed by Calonico et al. (2014) and related literature. Simulations provide evidence that this new method is at least as accurate as the plug-in analytical corrections when applied to a variety of data generating processes featuring endogeneity and clustering. Finally, we demonstrate its empirical relevance by revisiting Angrist and Lavy (1999) analysis of class size on student outcomes.
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