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California subsidizes within-state tuition of students who has a high school GPA of 3 or above (CAL grant) as long as they submit a federal
California subsidizes within-state tuition of students who has a high school GPA of 3 or above (CAL grant) as long as they submit a federal financial aid application. Suppose you want to understand how receiving this grant affects students' college going probability using regression discontinuity.
- Will you need to use a sharp regression discontinuity method or a fuzzy regression discontinuity method? Why?
- Write down the estimating equation(s). Which coefficient would give you the effect of receiving this grant on students' college going probability?
- What are the assumption(s) needed for regression discontinuity method to give us valid estimates? Be specific. How can you test the assumption(s)?
- Can this method tell us how students with high school GPA of 3.8 are affected by the program?
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