Kirill Borusyak, Mauricio Caceres Bravo, Peter Hull
arXiv 5 Apr 2025 · Econometrics
arXiv:2504.04056 · PDF · DOI · OpenAlex · Extracted main text
We develop a new approach to estimating flexible demand models with exogenous supply-side shocks. Our approach avoids conventional assumptions of exogenous product characteristics, putting no restrictions on product entry, despite using instrumental variables that incorporate characteristic variation. The proposed instruments are model-predicted responses of endogenous variables to the exogenous shocks, recentered to avoid bias from endogenous characteristics. We illustrate the approach in a series of Monte Carlo simulations.
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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 | Borusyak and Hull (2023) Non-Random Exposure to Exogenous Shocks | 1.000 | 8 | 3 | 100% |
| 2 | Borusyak and Hull (2025) Optimal Formula Instruments | 1.000 | 6 | 3 | 100% |
| 3 | Borusyak, Hull and Jaravel (2022) Quasi-Experimental Shift-Share Research Designs | 1.000 | 5 | 3 | 100% |
| 4 | Gandhi and Houde (2020) Measuring Substitution Patterns in Differentiated Products Industries: The Missing Instruments | 0.946 | 13 | 4 | 85% |
| 5 | Goldberg and Verboven (2001) The evolution of price dispersion in the european car market | 0.928 | 4 | 3 | 100% |
| 6 | Berry, Levinsohn and Pakes (1999) Voluntary Export Restraints on Automobiles: Evaluating a Trade Policy | 0.874 | 9 | 2 | 100% |
| 7 | Berry, Levinsohn and Pakes (1995) Automobile Prices in Market Equilibrium | 0.874 | 7 | 2 | 100% |
| 8 | Salanie and Wolak (2022) Fast, Detail-free, and Approximately Correct: Estimating Mixed Demand Systems | 0.843 | 4 | 3 | 75% |
| 9 | Miller and Weinberg (2017) Understanding the Price Effects of the MillerCoors Joint Venture | 0.843 | 3 | 3 | 100% |
| 10 | Nevo (2001) Measuring market power in the ready-to-eat cereal industry | 0.811 | 4 | 2 | 100% |
Showing the top 10 of 60 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Nonparametric Identification of Demand without Exogenous Product Characteristics | 0.946 | 13 | 4 |
| 2 | A Design-Based Approach to Testing and Inference in (Quasi-)Experiments with Spillovers | 0.644 | 2 | 2 |
| 3 | Robust Signal Maximization in Spillover Experiments | 0.644 | 2 | 2 |