Arbeitspapier

Non-random exposure to exogenous shocks: Theory and application

We develop new tools for causal inference in settings where exogenous shocks affect the treatment status of multiple observations jointly, to different extents. In these settings researchers may construct treatments or instruments that combine the shocks with predetermined measures of shock exposure. Examples include measures of spillovers in social and transportation networks, simulated eligibility instruments, and shift-share instruments. We show that leveraging the exogeneity of shocks for identification generally requires a simple but nonstandard recentering, derived from the specification of counterfactual shocks that might as well have been realized. We further show how specification of counterfactual shocks can be used for finite-sample inference and specification tests, and we characterize the recentered instruments that are asymptotically efficient. We use this framework to estimate the employment effects of Chinese market access growth due to high-speed rail construction and the insurance coverage effects of expanded Medicaid eligibility.

Sprache
Englisch

Erschienen in
Series: cemmap working paper ; No. CWP46/20

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Borusyak, Kirill
Hull, Peter
Ereignis
Veröffentlichung
(wer)
Centre for Microdata Methods and Practice (cemmap)
(wo)
London
(wann)
2020

DOI
doi:10.47004/wp.cem.2020.4620
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Borusyak, Kirill
  • Hull, Peter
  • Centre for Microdata Methods and Practice (cemmap)

Entstanden

  • 2020

Ähnliche Objekte (12)