In the paper on which this example is based, the authors use a regression discontinuity (RD) design. In this design, the authors use the Democratic candidate’s electoral margin variable to make comparisons between states that narrowly elected a Democrat to states that narrowly elected a Republican for governor. In this question, you will replicate parts of the original RD analysis.
How do i identify the discontinuity of an electoral margin????
b. Use the dem_margin variable to compare policy outcomes between states that narrowly elected a Democratic governer and states that narrowly elected a Republican governor. Report and interpret the regression discontinuity treatment effect for all four outcome variables.