English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Zendy Plus

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Zendy Tools

Zendy Open

Regression discontinuity (RD) is a widely used quasi-experimental design forcausal inference. In the standard RD, the assignment to treatment is determinedby a continuous pretreatment variable (i.e., running variable) falling above orbelow a pre-fixed threshold. In the case of the corporate sector purchaseprogramme (CSPP) of the European Central Bank, which involves large-scalepurchases of securities issued by corporations in the euro area, such athreshold can be defined in terms of an ordinal running variable. This featureposes challenges to RD estimation due to the lack of a meaningful measure ofdistance. To evaluate such program, this paper proposes an RD approach forordinal running variables under the local randomization framework. The proposalfirst estimates an ordered probit model for the ordinal running variable. Theestimated probability of being assigned to treatment is then adopted as alatent continuous running variable and used to identify a covariate-balancedsubsample around the threshold. Assuming local unconfoundedness of thetreatment in the subsample, an estimate of the effect of the program isobtained by employing a weighted estimator of the average treatment effect. Twoweighting estimators---overlap weights and ATT weights---as well as theiraugmented versions are considered. We apply the method to evaluate the causaleffect of the CSPP and find a statistically significant and negative effect oncorporate bond spreads at issuance.

A Regression Discontinuity Design for Ordinal Running Variables: Evaluating Central Bank Purchases of Corporate Bonds