moderator
Jan 16
Articles
Consumer Response to Composite Ratings of Nursing Home Quality, Marcelo Perraillon, Tamara Konetzka, Daifeng He, and Rachel Werner, in the American Journal of Health Economics, 2019, right here: https://www.journals.uchicago.edu/doi/abs/10.1162/ajhe_a_00115 . This article illustrates the bugaboo of regression discontinuity methods: elegant theoretically, they can sometimes yield nonsensical results in practice. This happens in Figure 1, which illustrates the trend lines on each side of a set of discontinuities for relatively small bandwidths. The anticipated slopes of these lines are clear from theory: all positive. In practice, they are all over the place. In this paper, description is saying something, if we stop to listen.
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