Stata command for running an RDD with 2 treamtents and cut-off lines

Expert Solution

// Before program participation 
set seed 2
set obs 1000
range x_obs -1 1 1000
g y_pre = x_obs^3 + rnormal()

tw scatter y_pre x_obs, msize(small) mcolor(gs10) ///
    || lfit y_pre x_obs, range(-.35 .35) lcolor(black) lw(thick) ///
        xline(0, lpattern(-)) ///
        yt("Outcome variable (Y)") ///
        xt("Assignment variable (X)") ///
        t("Before program participation") ///
        legend(off)  ///
        xline(-.35 .35, lp(-) lc(gs10)) ///
        text(-4.5 -.35 "{it:-h}") ///
        text(-4.5 +.35 "{it:h}")

// After program participation 
set seed 2
local tau = 1.25
cap drop y_post
g y_post= x +`tau' + rnormal() if x=0

tw scatter y_post x_obs, msize(small) mcolor(gs10) yl(-4(2)4) ///
     || lfit y_post x_obs if inrange(x_obs, -.35, 0), ///
        range(-.35 0 ) lcolor(black) lw(thick) ///
     || lfit y_post x_obs if inrange(x_obs, 0, .35), ///
        range(0  .35 ) lcolor(black) lw(thick) ///
        xline(0, lpattern(-)) ///
        yt("Outcome variable (Y)") ///
        xt("Assignment variable (X)") ///
        t("After program participation") ///
        legend(off) ///
        text(.9 0.05 "{&tau}", size(*2)) ///
        xline(-.35 .35, lp(-) lc(gs10)) ///
        text(-4.5 -.35 "{it:-h}") ///
        text(-4.5 +.35 "{it:h}")

orchestra answered 2 years ago

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