Design-based identification with formula instruments: A review

Kirill Borusyak, Peter Hull and Xavier Jaravel

No 12/23, CeMMAP working papers from Institute for Fiscal Studies

Abstract: Many studies in economics use instruments or treatments which combine a set of exogenous shocks with other predetermined variables by a known formula. Examples include shift-share instruments and measures of social or spatial spillovers. We review recent econometric tools for this setting, which leverage the assignment process of the exogenous shocks and the structure of the formula for identification. We compare this design-based approach with conventional estimation strategies based on conditional unconfoundedness, and contrast it with alternative strategies that leverage a model for unobservables.

Date: 2023-06-28
New Economics Papers: this item is included in nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.cemmap.ac.uk/wp-content/uploads/2023/0 ... ruments-A-Review.pdf (application/pdf)

Related works:
Working Paper: Design-based identification with formula instruments: a review (2024)
Working Paper: Design-Based Identification with Formula Instruments: A Review (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:azt:cemmap:12/23

DOI: 10.47004/wp.cem.2023.1223

Access Statistics for this paper

More papers in CeMMAP working papers from Institute for Fiscal Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dermot Watson ().