@TechReport{iza:izadps:dp9838, author={Gerritsen, Sander and Webbink, Dinand and Weel, Bas ter}, title={Sorting around the Discontinuity Threshold: The Case of a Neighbourhood Investment Programme}, year={2016}, month={Mar}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={9838}, url={https://www.iza.org/publications/dp9838}, abstract={This paper investigates the empirical validity of the setup of a large-scale government neighbourhood investment programme in the Netherlands. Selection of neighbourhoods into the programme was determined by their score on a predetermined index. At first sight this is a textbook example for the application of a regression discontinuity (RD) design to estimate the causal effect of the programme on neighbourhood outcomes. However, at the discontinuity threshold we find a large gap in the share of non-Western immigrants. In addition, the pattern of non-compliance with the assignment rule is consistent with investing in neighbourhoods with a high share of non-Western immigrants. Finally, the way of selecting neighbourhoods into the programme could be a likely explanation for the imbalance at the discontinuity threshold. This case illustrates that RD designs can become invalid even when treatment and control groups have no influence on the assignment.}, keywords={regression discontinuity designs;government decision-making processes;neighbourhood investment programmes}, }