A regression discontinuity stochastic frontier model with an application to educational attainment. Issue 1 (22nd August 2019)

• Record Type: Journal Article
• Authors: Johnes, Geraint; Tsionas, Mike G.
• Is Part Of: Stat. Volume 8:Issue 1 (2019)
• Page Start: n/a
• Page End: n/a
• Publication Date: 2019-08-22
• Subjects: education -- regression discontinuity -- stochastic frontier; Statistics -- Periodicals; 519.2
• DOI: 10.1002/sta4.242
• Languages: English
• ISSNs: 2049-1573

Abstract

Abstract : We extend the regression discontinuity design model to the case in which the line of best fit is replaced by a stochastic frontier. The method allows causality issues to be examined in a context where the performance measure is subject to inefficiency and where, in addition to the relationship between dependent and explanatory variables, there may be a discontinuity in the inefficiency measure at the break. The inefficiency scores are modelled as part of the system, but we follow a novel nonparametric approach. We illustrate the method with an application to data from Texas on class size and pupil performance, exploiting a Maimonides' rule discontinuity. We find that class size affects performance in the expected direction but that there is a corresponding effect in the opposite direction on efficiency. This may contribute to the difficulty experienced by the authors of earlier studies in identifying a class size effect.