What is regression discontinuity design?

Regression discontinuity design is a quasi-experimental approach that compares two groups of participants that are separated based on an arbitrary threshold. This method assumes that people immediately above and immediately below this threshold are quite similar. Any subsequent differences between these groups can therefore be attributed to interventions that one group does or does not receive.

For example, imagine you’re testing the efficacy of a cholesterol medication. You administer this medication only to patients whose cholesterol levels exceed 200 mg/dl. You then compare heart health indicators of patients with cholesterol levels slightly over 200 mg/dl, who do receive the medication, to patients with cholesterol levels slightly below 200 mg/dl, who do not receive the medication. If the heart health of the former group improves relative to the latter group, you may conclude that the treatment worked.