Question

True or False:

1) ____ The treatment effect identified using Regression Discontinuity Designs (RDD) is typically global, in the sense that it applies, in principle, to the relevant population as a whole.

2) ____ Consider the model y=α+βx+u, where x is an endogenous covariate (i.e., it is correlated with u) and z is a candidate instrument for x. Even if there is some correlation between z and u it will be usually better to use IV estimation than OLS estimation because IV should be less inconsistent.

Answer 1

1)The treatment effect identified using Regression Discontinuity Designs (RDD) is typically global, in the sense that it applies, in principle, to the relevant population as a whole.(True)

2) Consider the model y=α+βx+u, where x is an endogenous covariate (i.e., it is correlated with u) and z is a candidate instrument for x. Even if there is some correlation between z and u it will be usually better to use IV estimation than OLS estimation because IV should be less inconsistent.(True)

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