Hi All,
We are using a regression discontinuity design to estimate effect of the
passage of a school bond to reduce class size on actual class sizes. This
gives us plausibly exogenous variation in class size.
We are wondering how we might be able to use these predicted values (the
exogenous part of class size) to then estimate the effects of class size
reduction on student achievement.
I have never seen a two stage least squares where your instrument in the
first stage comes from a regression discontinuity. I know if we simply use
the predicted values from the first stage and plug them into the second
stage as our class size variable then we have to adjust the standard errors
of the second stage equation but I don't know how to do that. It is also
unclear to me if we would need to include the same control terms from the RD
design in the second stage where we regress student achievement on class
size.
Any insights would be greatly appreciated.
matt
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Matthew Kraft
Doctoral Candidate
Quantitative Policy Analysis
Harvard Graduate School of Education