Abstract
AbstractThere exist two alternative assumptions to identify local average treatment effects (LATE) in fuzzy regression discontinuity (RD) designs: local independence (LI) and local smoothness (LS). Together with the usual LATE assumptions requiring existence of a first‐stage and treatment monotonicity, either of these two assumptions is sufficient to identify RD LATE. I discuss the practical (and testable) implications of these alternative assumptions, and show that weakening LI by LS might be empirically relevant. However, when LI does hold, there are some practical implications one may explore. Numerical and empirical examples are briefly presented.
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