2022
DOI: 10.1093/erae/jbac023
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Regression discontinuity designs in agricultural and environmental economics

Abstract: Regression discontinuity designs (RDD) are increasingly being employed in agricultural and environmental economics to identify causal effects. Here, we showcase recent applications, identify best practices, discuss commonly invoked identifying assumptions and show how these can be tested. We discuss basic empirical issues and more advanced topics, including how to exploit the availability of panel data, models to explain heterogeneous treatment effects and extrapolation of local estimates. Moreover, we show ho… Show more

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Cited by 24 publications
(11 citation statements)
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“…For this, we zoom into international border areas and analyze whether there are discontinuities in the risk of pesticide pollution across international borders. In section c below, we discuss the necessary assumptions that must be fulfilled such that this approach identifies countries' causal effect (Wuepper and Finger, 2022). The main idea is that countries' influence is sharply delineated by their borders whereas the influence of environmental and geographic confounders changes either smoothly or randomly across them (Hahn et al, 2001, Lee and Lemieux, 2010, Turner et al, 2014.…”
Section: Spatial Regression Discontinuity Design: Quantifying and Exp...mentioning
confidence: 99%
See 1 more Smart Citation
“…For this, we zoom into international border areas and analyze whether there are discontinuities in the risk of pesticide pollution across international borders. In section c below, we discuss the necessary assumptions that must be fulfilled such that this approach identifies countries' causal effect (Wuepper and Finger, 2022). The main idea is that countries' influence is sharply delineated by their borders whereas the influence of environmental and geographic confounders changes either smoothly or randomly across them (Hahn et al, 2001, Lee and Lemieux, 2010, Turner et al, 2014.…”
Section: Spatial Regression Discontinuity Design: Quantifying and Exp...mentioning
confidence: 99%
“…The second part of the equation defines exactly how identification is achieved. We fit two separate regression lines on each border side and their vertical distance close to c identifies τ ij , under the assumption that without τ ij , the pesticide pollution risk would be distributed spatially continuously across the border (Wuepper and Finger, 2022). To estimate the average border discontinuity in pesticide pollution risk globally, we estimate the following regression:…”
Section: Spatial Regression Discontinuity Design: Quantifying and Exp...mentioning
confidence: 99%
“…For each equation, italicCRPi or YiL can alternatively represent changes in CRP or land cover proportions from before to after the 2016 Signup. This constitutes an RD of the first differences for land covers, similar to the estimator described in Lemieux and Milligan (2008) or the difference in discontinuities model described in Wuepper and Finger (2023). The first differences approach better accounts for any baseline differences between accepted and rejected offers that exist before CRP applications are made.…”
Section: Rd Estimates Of Crp Land Use Impactsmentioning
confidence: 99%
“…Lalive et al analyzed the joint retirement decisions of couples in Switzerland, finding that men and women are 28% and 12% less likely to be in the labor market around the full retirement age, respectively (Lalive & Parrotta, 2017). Recently, researchers have increasingly used RDD in environmental economics and agriculture to identify causal effects (Asher & Novosad, 2020;Ayres et al, 2019;Jones et al, 2022;Wuepper & Finger, 2022). In many real-world cases, various thresholds such as population level, poverty level, pay line, or farm size exist, making RDD a highly valuable tool in the empirical toolkit.…”
Section: Introductionmentioning
confidence: 99%