🤖 AI Summary
This study addresses the inadequate modeling of treatment effect heterogeneity in regression discontinuity designs when covariates are ignored. To overcome this limitation, the authors propose a nonparametric approach based on Bayesian Additive Regression Trees (BART). The method constructs local linear models within a neighborhood of the cutoff and integrates a generalized Bayesian framework with the Hyvärinen score to automatically select the optimal bandwidth, enabling direct estimation of covariate-dependent conditional average treatment effects. By innovatively combining BART’s flexible nonlinear modeling capabilities with the causal identification structure inherent in regression discontinuity designs, the approach effectively captures complex patterns of heterogeneity. Numerical experiments demonstrate that the proposed method substantially improves the accuracy and robustness of causal effect estimation.
📝 Abstract
Regression discontinuity designs (RDD) are widely used for causal inference. In many empirical applications, treatment effects vary substantially with covariates, and ignoring such heterogeneity can lead to misleading conclusions, which motivates flexible modeling of heterogeneous treatment effects in RDD. To this end, we propose a Bayesian nonparametric approach to estimating heterogeneous treatment effects based on Bayesian Additive Regression Trees (BART). The key feature of our method lies in adopting a general Bayesian framework using a pseudo-model defined through a loss function for fitting local linear models around the cutoff, which gives direct modeling of heterogeneous treatment effects by BART. Optimal selection of the bandwidth parameter for the local model is implemented using the Hyvärinen score. Through numerical experiments, we demonstrate that the proposed approach flexibly captures complicated structures of heterogeneous treatment effects as a function of covariates.