ey assumptions and checks
The key assumptions are similar to those for regression discontinuity and are checked in similar ways:
There should be no change in slope at the kink point for other covariates (e.g. Landais shows no kinks in slope for age, education, capital income, or number of dependents at the kink point)
There is no manipulation of the assignment variable at the kink point – e.g. in the unemployment case, people don’t strategically manipulate their past earnings in expectation of how this will affect their future unemployment benefits. This can be tested by McCrary-type tests that show the distribution of the assignment variable is continuous at the kink point, and also that the first derivative of this pdf is also smooth. Card et al. (2015) show that you can allow agents to do some sorting around the kink points, so long as they make small optimization errors or mistakes so that this sorting is not completely deterministic.
This paper suggests some placebo tests you can do at non-kink points.
Technical details can be found in this Econometrica paper by Card et al. (2015).
Caveats
The RKD design can do pretty poorly in small samples, and typically will require a wider bandwidth or larger sample than you would need with a RDD.
There are methods for optimally choosing the bandwidth, and papers that aren’t able to justify this choice and/or show robustness to different bandwidth choices face criticism. See the comments on this AEJ Economic Policy paper for an example.
Resources:
The AEJ paper of Landais has data and replication Stata code available online.
This Stata Journal article by Calonico et al. has some RD code that also covers the RKD case.