Regression Discontinuity Design
Uses schemes where assignment changes at a continuous indicator's threshold to compare nearby outcomes. Estimates a local threshold difference, not automatically generalizable to distant targets. [1]
- Difficulty
- Advanced
- Cost
- Medium
- Duration
- Illustrative planning durations, not common standards: preparation 1–3 weeks, analysis/diagnostics 1–2 weeks
How it works at a glance
Check the running variable, cutoff and actual rules. Examine whether outcomes would be continuous without intervention and whether manipulation or other schemes create jumps. [1]
Distinguish sharp assignment changes from fuzzy probability changes. Check robustness across bandwidths and specifications. [1]
When to use it and when it is unsuitable
When to use it
- Eligibility determined by available numerical score, income or age cutoffs
- Retrospective education selection, income-based social benefits or subsidy programs with clear cutoffs
- Receipt or probability changes at a usable threshold
- Local cutoff effects suffice for policy decisions
When it is unsuitable
- Too few observations near the boundary for sufficient precision
- Running variables can be manipulated deliberately near the cutoff
- Need whole-program or all-target average effects rather than local effects
Participants, roles, and deliverables
Participants and roles
1–2 econometric/statistical specialists collaborating with authorized administrative/score-data managers
Main deliverables
- RDD plot: running variable/outcome scatter and local polynomial fits
- Discontinuity estimates, standard errors and confidence intervals
- Robustness: bandwidths, placebo cutoffs, etc.
- McCrary density test results for manipulation
Implementation steps
- Identify running variable and cutoffRecord assignment variable, cutoff and actual receipt. Examine sharp versus fuzzy changes and exceptions.
- Collect data and check distributionsCollect running variables, outcomes and pre-traits; examine density, distributions and implementation. Density tests alone do not prove no manipulation; consider discrete scores and score generation.
- Visualize near the cutoffPlot outcomes against running variables with local polynomial fits to inspect jumps. Try multiple bin widths for stability.
- Select bandwidthSet local data range and method and explain selection. Report multiple bandwidth analyses, not only favorable ones.
- Calculate RDDEstimate conditional outcomes on each side and their cutoff difference. Sharp designs estimate mean cutoff effects; fuzzy designs consider outcome jumps divided by receipt-probability jumps under additional assumptions. Match intervals to estimation.
- Robustness testsReport bandwidth/model changes, pre-traits and other cutoffs. Check other interventions changing at the same cutoff. No detected discontinuity does not prove continuity.
Strengths and limitations
Strengths
- Valid threshold comparisons estimate nearby effects
- Uses existing administrative or eligibility rules without new experiments
- Transparent running-variable/cutoff settings and many established diagnostic tests
- Allows specific examination of assignment and continuity grounds
Limitations
- Sharp/fuzzy estimands differ; both usually concern near-cutoff effects, not all-target averages.
- Deliberate running-variable manipulation undermines identification
- Sparse near-cutoff samples increase uncertainty and may lack practical precision
- Counterfactual continuity of potential outcomes near the cutoff cannot be proven
Common pitfalls
- Check manipulation and other cutoff-linked schemes using institutional documents, implementation, distributions and pre-traits.
- Do not choose bandwidth to fit findings. Show rationale, multiple settings and uncertainty.
- Do not generalize local effects as whole-program effects.
- Do not merely fit complex curves over broad ranges. Check local specifications and sensitivity.
Conditions of use and evidence
- Check threshold assignment mechanisms and interpret effects locally. [1]
Assign training at a score cutoff
A fictional scheme assigns training at scores of 60 or above to illustrate sharp RDD estimates.
| Estimand | Fictional estimate at cutoff 60 |
|---|---|
| Limit of use rate from below | 50% |
| Limit of use rate from above | 62% |
| Cutoff difference | 12 percentage points |
Common errors in judgment
Simply compare everyone scoring 60 or above with everyone scoring below 60
How to revise
Estimate functions locally on both sides
ReasonDistant scores may have very different preconditions.
Ignore exceptions and report sharp RDD
How to revise
Check actual receipt-probability jumps before selecting design
ReasonMeaning depends on correspondence between assignment and receipt.
References and checked sections
- Development Research in Practice: Research design for impact evaluationWorld Bank DIME Analytics
- Section consulted
- Regression discontinuity
- How it relates to the text
- Check threshold assignment mechanisms and interpret effects locally.
Editorial and checking information
How to cite this page
Change history
- — Checked sources for definitions and conditions and added fictional examples, judgment rationales and completed entries for every field. Revised unsupported historical or uptake claims. Reviewed procedures and cautions, adjusting fixed counts, thresholds and institutional generalizations. Preserved field positions, types and counts while revising fixed conditions and thresholds.


