This allows a full 2003-2007 decide to try to-be run-in just one regression
cuatro . 2 Requirements
The latest crucial variables regression discontinuity specification included in it papers fits a flexible polynomial to the either side of your own assessment cutoff and you may actions the size of the brand new discontinuity playing with a dummy varying bringing value 1 getting findings underneath the cutoff. The initial-phase specification was:
In which was a sign for whether the mortgage origination matter try underneath the conforming restrict, as they are seventh-acquisition polynomial functions of appraisal matter, try an indicator to possess whether or not the assessment amount are underneath the assessment restriction, and that is an effective vector out-of control parameters together with refinance condition, dummies to own FICO get inside 5-point pots, as well as 600,000 dummies for every single area code/week away from origination combination regarding dataset, making it possible for me to handle getting local business requirements most flexibly. 19 As the appraisal restrict may vary of the year and you will place, every information is pooled because of the re also-focus the content such that, for each and every year and place, the appropriate assessment maximum is equivalent to no. Desk dos provides a listing of the new appropriate conforming limits and you can assessment restrictions for everybody years and you will metropolises regarding the test.