Jinyong Hahn, Guido Kuersteiner, Andres Santos, Wavid Willigrod
arXiv 25 Apr 2024 · Econometrics
arXiv:2404.17049 · PDF · DOI · OpenAlex · Extracted main text
This paper studies the testability of identifying restrictions commonly employed to assign a causal interpretation to two stage least squares (TSLS) estimators based on Bartik instruments. For homogeneous effects models applied to short panels, our analysis yields testable implications previously noted in the literature for the two major available identification strategies. We propose overidentification tests for these restrictions that remain valid in high dimensional regimes and are robust to heteroskedasticity and clustering. We further show that homogeneous effect models in short panels, and their corresponding overidentification tests, are of central importance by establishing that: (i) In heterogenous effects models, interpreting TSLS as a positively weighted average of treatment effects can impose implausible assumptions on the distribution of the data; and (ii) Alternative identifying strategies relying on long panels can prove uninformative in short panel applications. We highlight the empirical relevance of our results by examining the viability of Bartik instruments for identifying the effect of rising Chinese import competition on US local labor markets.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Adao, R., Kolesár, M. and Morales, E (2019) Shift-share designs: Theory and inference | 1.000 | 49 | 9 | 100% |
| 2 | Autor, D. H., Dorn, D. and Hanson, G. H (2013) The china syndrome: Local labor market effects of import competition in the united states | 1.000 | 34 | 4 | 100% |
| 3 | Goldsmith-Pinkham, P., Sorkin, I. and Swift, H (2020) Bartik instruments: What, when, why, and how | 1.000 | 25 | 7 | 100% |
| 4 | Borusyak, K., Hull, P. and Jaravel, X (2022) Quasi-experimental shift-share research designs | 1.000 | 22 | 7 | 100% |
| 5 | Chernozhuokov, V., Chetverikov, D., Kato, K. and Koike, Y (2022) Improved central limit theorem and bootstrap approximations in high dimensions | 1.000 | 7 | 3 | 100% |
| 6 | Hahn, J., Kuersteiner, G. and Mazzocco, M (2019) Estimation with Aggregate Shocks self | 0.874 | 5 | 2 | 100% |
| 7 | Blandhol, C., Bonney, J., Mogstad, M. and Torgovitsky, A (2022) When is tsls actually late? | 0.737 | 3 | 2 | 100% |
| 8 | van der Vaart, A. W. and Wellner, J. A (1996) Weak Convergence and Empirical Processes: with Applications to Statistics | 0.737 | 3 | 2 | 100% |
| 9 | Chernozhukov, V., Chetverikov, D. and Kato, K (2019) Inference on causal and structural parameters using many moment inequalities | 0.693 | 7 | 1 | 100% |
| 10 | Eagleson, G. K (1975) Martingale convergence to mixtures of infinitely divisible laws | 0.693 | 7 | 1 | 100% |
Showing the top 10 of 32 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Nonlinear Treatment Effects in Shift-Share Designs | 1.000 | 11 | 4 |
| 2 | Shift-Share Designs in Political Science | 0.941 | 6 | 3 |
| 3 | On Local Overidentification and Efficiency Gains in Modern Causal Inference and Data Combination | 0.405 | 1 | 1 |
| 4 | Representativeness and Efficiency in Overidentified IV | 0.405 | 1 | 1 |