Difference-in-discontinuities: theory and applications

• Grant number: 23/01770-6
• Support Opportunities: Scholarships in Brazil - Doctorate (Direct)
• Start date: July 01, 2023
• End date: September 03, 2025
• Field of knowledge: Applied Social Sciences - Economics - Quantitative Methods Applied to Economics
• Principal Investigator: Cristine Campos de Xavier Pinto
• Grantee: Stephanie Tramontin Shinoki
• Host Institution: Instituto de Ensino e Pesquisa (Insper). São Paulo , SP, Brazil
• Associated scholarship(s): 24/02341-4 - Staggered Difference-in-Discontinuities: Estimation, Inference and Validity Tests, BE.EP.DD

Abstract

his project sets out to explore the econometric theory behind the newly developed difference-in-discontinuities design. Despite its increasing use in causal inference research, there are currently limited studies about its underlying principles and properties. The method combines elements of regression discontinuity and difference-in-differences, allowing researchers to eliminate the effects of potential threshold discontinuities and account for changes in the larger environment. The project will work on formalizing the difference-in-discontinuity theory, including identification assumptions, a nonparametric unbiased estimator, and its asymptotic distribution. We aim to use Monte Carlo simulations to demonstrate the small sample properties and validate the asymptotic characteristics derived. (AU)