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Abstract: The regression discontinuity (RD) design is a commonly used non-experimental approach for evaluating policy or program effects. However, this approach heavily relies on the untestable assumption that distribution of confounders or average potential outcomes near or at the cutoff are comparable. When there are multiple cutoffs that create several discontinuities in the treatment assignments, factors that can lead this assumption to the failure at one cutoff may overlap with those at other cutoffs, invalidating the causal effects from each cutoff. In this study, we propose a novel approach for testing the causal hypothesis of no RD treatment effect that can remain valid even when the assumption commonly considered in the RD design does not hold. We propose leveraging variations in multiple available cutoffs and constructing a set of instrumental variables (IVs). We then combine the evidence from multiple IVs with a direct comparison under the local randomization framework. This reinforced design that combines multiple factors from a single data can produce several, nearly independent inferential results that depend on very different assumptions with each other. Our proposed approach can be extended to a fuzzy RD design. We apply our method to evaluate the effect of having access to higher achievement schools on students' academic performances in Romania.more » « less
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Abstract Blocked randomized designs are used to improve the precision of treatment effect estimates compared to a completely randomized design. A block is a set of units that are relatively homogeneous and consequently would tend to produce relatively similar outcomes if the treatment had no effect. The problem of finding the optimal blocking of the units into equal sized blocks of any given size larger than two is known to be a difficult problem—there is no polynomial time method guaranteed to find the optimal blocking. All available methods to solve the problem are heuristic methods. We propose methods that run in polynomial time and guarantee a blocking that is provably close to the optimal blocking. In all our simulation studies, the proposed methods perform better, create better homogeneous blocks, compared with the existing methods. Our blocking method aims to minimize the maximum of all pairwise differences of units in the same block. We show that bounding this maximum difference ensures that the error in the average treatment effect estimate is similarly bounded for all treatment assignments. In contrast, if the blocking bounds the average or sum of these differences, the error in the average treatment effect estimate can still be large in several treatment assignments.more » « less
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