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My question arises from an arbitrary assignment rule which gives monetary transfers to cities in Colombia with a population of less than 25,000 inhabitants. However, the transfer varies between cities depending on its respective population and poverty levels. With that context, is it possible to run an RDD? If so, which literature is suggested to read? Thanks.

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  • $\begingroup$ Why does it vary with population? Are there multiple cutoffs? $\endgroup$
    – Papayapap
    May 11, 2023 at 7:53
  • $\begingroup$ Cutoff is the same for all cities, which is 25,000 inhabitants. However, a city with, for example, a population of 10,000 inhabitants receives more money than a city with a population of 23,000 inhabitants. The same occurs for poverty level: two cities with similar populations (both under 25,000 inhabitants) but with different poverty levels would receive different amounts of money. $\endgroup$ May 14, 2023 at 16:18

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