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Estimation of treatment effects using Regression Discontinuity design

This thesis includes three substantive empirical studies (in Chapters 3, 4 and 5), where each study uses the same econometric methodology, named Regression Discontinuity design, which has an attractive feature - local randomisation. This feature has given the superiority of the method over the other evaluation methods in estimating unbiased treatment effects. Besides, the fuzzy Regression Discontinuity design can control for the endogeneity of the treatment variable, which is another advantage of the method. In each of the studies considered, the endogeneity problem exists. The application of the fuzzy Regression Discontinuity design is itself a contribution in each of the studies. Moreover, each study contributes in its own field. In Chapter 3, we investigate how much the Social Safety Net programs, that provide free food, or cash, or both to the food insecure households in Bangladesh, improve calorie consumption of the beneficiary households. Using Household Income and Expenditure Survey 2005, we find that the effect of the programs is around 843 kilo calorie, which is substantial compared to the previous studies. In Chapter 4, we examine how much was the impact of Education Maintenance Allowance, a program that provided weekly allowance to the young people in Years 12 and 13 in England, on the staying rate in the post compulsory full-time education. The program was abolished in 2010. Using the Longitudinal Survey of Young People in England, we find that the effect of the program was substantial - around 15 percent. The effect of a £1 increase in weekly allowance was around 1 percent. These effects were mainly on the white young people. Using the household survey data - Family Expenditure Survey (1968-2009) - in UK, Chapter 5 establishes that before 1981 consumption substantially fell at the retirement age. This fall is less severe after 1980. However, throughout the data period, consumption fall at the retirement age is fully explained by the expected fall in income, which contradicts the life cycle model, where a consumption growth is independent of an income growth.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:764316
Date January 2014
CreatorsRahman, Mohammad
ContributorsAndrews, Martyn ; Imai, Katsushi
PublisherUniversity of Manchester
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttps://www.research.manchester.ac.uk/portal/en/theses/estimation-of-treatment-effects-using-regression-discontinuity-design(b838592f-7648-4119-8e73-a299fddfda5f).html

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