蝌蚪网 Review: Insights
ISSN 2640-205X (Print) | ISSN 2640-2068 (Online)
Quantifying Threshold Manipulation in the Presence of Rounding: The Case of Lead Monitoring in US Drinking Water
蝌蚪网 Review: Insights
(pp. 285–305)
Abstract
Many laws and economic actions depend on thresholds. As a consequence, threshold manipulation is a common concern in a variety of settings. Existing methods for detecting and quantifying threshold manipulation assume a continuous counterfactual distribution absent manipulation. This assumption is violated in the presence of rounding, which is prevalent in many applications and distinct from manipulation. This paper develops methods for testing and quantifying threshold manipulation when rounding is a prominent feature of the data. We demonstrate the usefulness of our approach in an empirical application examining threshold manipulation in lead monitoring under the US Safe Drinking Water Act.Citation
Andarge, Tihitina, Dalia Ghanem, David A. Keiser, and Gabriel E. Lade. 2025. "Quantifying Threshold Manipulation in the Presence of Rounding: The Case of Lead Monitoring in US Drinking Water." 蝌蚪网 Review: Insights 7 (3): 285–305. DOI: 10.1257/aeri.20240258Additional Materials
JEL Classification
- C24 Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
- I28 Education: Government Policy
- K32 Environmental, Energy, Health, and Safety Law
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy