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Cutoff Threshold

Predetermined discontinuity point where the probability of receiving treatment changes abruptly, serving as the basis for causal identification in regression discontinuity.

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Forcing Variable

Continuous variable determining treatment assignment relative to the cutoff threshold, assumed to be random locally around the threshold to ensure causal validity.

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Bandwidth

Window around the cutoff threshold selected for analysis, balancing bias and variance in the estimation of the local treatment effect.

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Sharp RD

Configuration where treatment changes deterministically when crossing the threshold, creating a perfect discontinuity in the treatment probability.

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Fuzzy RD

Variant where the treatment probability changes probabilistically at the threshold, requiring estimation techniques similar to instrumental variables.

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McCrary Test

Density test verifying the fundamental assumption of no manipulation of the forcing variable around the cutoff threshold.

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Local Treatment Effect

Average causal effect estimated for marginal units at the threshold boundary, representing the effect for individuals indifferent to treatment.

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Continuity Validation

Empirical verification that covariates exhibit continuity at the threshold, supporting the assumption of local random assignment.

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Polynomial Function

Functional specification controlling for the relationship between the forcing variable and the outcome on each side of the threshold.

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Local Estimator

Weighted estimation method giving more importance to observations near the threshold to minimize specification bias.

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Robustness

Sensitivity of estimates to methodological choices such as bandwidth, polynomial degree, and kernel function used.

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Intention to Treat Effect

Effect of eligibility for treatment rather than actual treatment, often the primary effect estimated in fuzzy RD designs.

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Calonico Criterion

Bandwidth selection methodology optimized to minimize asymptotic bias while controlling variance in RD estimation.

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Assignment Density

Observed distribution of the forcing variable used to detect potential strategic manipulations around the threshold.

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Optimization Window

Range of forcing variable values where the bias-variance tradeoff is optimal for causal effect estimation.

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Jump Discontinuity

Instantaneous change in the average outcome when crossing the threshold, representing the causal effect identified in sharp RD.

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Robust Inference

Statistical methods accounting for uncertainty in bandwidth selection and functional specification for hypothesis testing.

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