Regression Discontinuity Analysis with Latent Variables

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Bibliographic Details
Title: Regression Discontinuity Analysis with Latent Variables
Language: English
Authors: Monica Morell, Muwon Kwon, Youngjin Han, Youjin Sung, Yang Liu, Ji Seung Yang
Source: Grantee Submission. 2026 61(1):178-191.
Peer Reviewed: Y
Page Count: 15
Publication Date: 2026
Sponsoring Agency: Institute of Education Sciences (ED)
Contract Number: R305D220030
Document Type: Journal Articles
Reports - Research
Descriptors: Regression (Statistics), Models, Item Response Theory, Research Design, Research Problems, Scores, Statistical Inference, Sample Size
DOI: 10.1080/00273171.2025.2565591
ISSN: 0027-3171
1532-7906
Abstract: A regression discontinuity (RD) design is often employed to provide causal evidence when the randomization of the treatment assignment is infeasible. When variables of interest are latent constructs measured by observed indicators, the conventional RD analysis using observed variable scores does not allow researchers to examine heterogeneity in the estimated local average treatment effect (ATE) and to generalize the ATE to participants away from the cutoff. We propose a novel methodological augmentation to the conventional RD analysis, which assumes the availability of multiple indicator variables (i.e., raw item responses) that measure the latent construct underlying the running variable. By specifying an explicit measurement model based on those indicator variables, our latent RD framework allows 1) defining the local ATE conditional on the latent construct, 2) disentangling the heterogeneity of the local ATE, and 3) generalizing the local ATE to running variable scores away from the cutoff. In a proof-of-concept simulation we illustrate the proposed augmentation recovers parameters of interest well under practical test length and sample size conditions.
Abstractor: As Provided
IES Funded: Yes
Entry Date: 2026
Accession Number: ED680414
Database: ERIC
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Description
Abstract:A regression discontinuity (RD) design is often employed to provide causal evidence when the randomization of the treatment assignment is infeasible. When variables of interest are latent constructs measured by observed indicators, the conventional RD analysis using observed variable scores does not allow researchers to examine heterogeneity in the estimated local average treatment effect (ATE) and to generalize the ATE to participants away from the cutoff. We propose a novel methodological augmentation to the conventional RD analysis, which assumes the availability of multiple indicator variables (i.e., raw item responses) that measure the latent construct underlying the running variable. By specifying an explicit measurement model based on those indicator variables, our latent RD framework allows 1) defining the local ATE conditional on the latent construct, 2) disentangling the heterogeneity of the local ATE, and 3) generalizing the local ATE to running variable scores away from the cutoff. In a proof-of-concept simulation we illustrate the proposed augmentation recovers parameters of interest well under practical test length and sample size conditions.
ISSN:0027-3171
1532-7906
DOI:10.1080/00273171.2025.2565591