mccrary#

McCrary density test for Regression Discontinuity designs.

Tests for manipulation of the running variable at the threshold by checking whether there is a discontinuity in the density. A significant density discontinuity suggests that units may have been able to manipulate their value of the running variable to sort into (or out of) treatment.

Uses a simple histogram-based approach: compares the count of observations in bins just below and just above the threshold.