Class 21: Regression Discontinuity Part II

Today we’ll work with a real-life example of RD using Medicare Advantage star ratings.

Objectives

• Explain optimal bin width and bandwidth calculations
• Define “manipulation” of the running variable
• Define what we mean by “covariate balance” and why it matters for RDD

Activities

• Implement an RD strategy with Medicare Advantage star ratings
• Test for manipulation of the running variable
• Test for covariate balance