NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Zhuan Pei

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Working Papers

November 2012Nonlinear Policy Rules and the Identification and Estimation of Causal Effects in a Generalized Regression Kink Design
with David Card, David Lee, Andrea Weber: w18564
We consider nonparametric identification and estimation in a nonseparable model where a continuous regressor of interest is a known, deterministic, but kinked function of an observed assignment variable. This design arises in many institutional settings where a policy variable (such as weekly unemployment benefits) is determined by an observed but potentially endogenous assignment variable (like previous earnings). We provide new results on identification and estimation for these settings, and apply our results to obtain estimates of the elasticity of joblessness with respect to UI benefit rates. We characterize a broad class of models in which a “Regression Kink Design” (RKD, or RK Design) provides valid inferences for the treatment-on-the-treated parameter (Florens et al. (2008)) that w...

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