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  • Regression Discontinuity with Interaction Term

    Hello

    I am running the following RD:

    Y=a+B1*indicator+B2*distance+B3*indicator*distance + e

    Where indicator =1 for crossing the cutoff (which is 0), distance is distance from cutoff. I want to think about how my treatment interacts with a covariate X. Do I do the following:

    Y=a+B1*indicator+B2*distance+B3*indicator*distance + B4*X + B5*X*indicator+B6*X*indicator*distance + B7*X*distance + e

    Is this right, and if so, which B is the correct one to think about the treatment interaction? Can I run this in rdrobust somehow?
    THanks!

  • #2
    Read this first.

    HTML Code:
    https://www.princeton.edu/~davidlee/wp/RDDEconomics.pdf

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    • #3
      This was incredibly helpful. Thank you!

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