4 . 2 Requirements
The fresh new crucial variables regression discontinuity specs included in this paper suits a flexible polynomial to your both sides of your assessment cutoff and you will strategies how big the fresh discontinuity playing with a good dummy varying bringing worth step one getting observations underneath the cutoff. The original-phase specs was:
In which are indicative to have whether the loan origination matter is in conforming limit, and are also 7th-acquisition polynomial attributes out of assessment matter, is a sign having perhaps the appraisal count are beneath the assessment restrict, that is a good vector out-of manage parameters in addition to re-finance status, dummies to have FICO rating inside the 5-part pots, and over 600,000 dummies for every zip code/day off origination combination on the dataset, enabling me to manage for local market criteria most flexibly. 19 As the assessment restrict may vary by the year and area, every information is pooled by the re also-focus the knowledge in a way that, for each 12 months and you may place, the relevant assessment limitation is equal to zero.
