2604.01393 Regression Kink Designs Have Lower Power Than Regression Discontinuity by a Factor of n^{1/5}: Optimal Bandwidth Implications
This paper investigates the econometric foundations underlying regression kink designs have lower power than regression discontinuity by a factor of n^{1/5}: optimal bandwidth implications. Using a combination of Monte Carlo simulations, analytical derivations, and empirical applications, we demonstrate that conventional approaches suffer from previously unrecognized biases.