Today, we read the new @QJEHarvard by Adao, Kolesar & Morales who show us that many Shift-Share Designs produce too small confidence intervals (i.e. many false positives). A must-read for applied economists!
#econfriday
![](https://pbs.twimg.com/media/EGr1erBX4AAQ_Xr.png)
-> R package: github.com/kolesarm/Shift…
economics.harvard.edu/files/economic…
Borusyak, @autoregress & Jaravel recommend running/vizualising regressions at the shock level (where the identifying variation comes from):
mit.edu/~hull/bartik_0…
-> Stata package: mit.edu/~hull/bartik_0…
![](https://pbs.twimg.com/media/EGr1gOPXYAEofVY.png)
paulgp.github.io/papers/bartik_…
-> Stata package: github.com/paulgp/bartik-…
![](https://pbs.twimg.com/media/EGr1gz4W4AElXwX.png)
@DavidAJaeger, Ruist & Stuhler caution that these IVs can conflate long & short run effects if these shocks are serially correlated and affect the same units over time
nber.org/papers/w24285.…
![](https://pbs.twimg.com/media/EGycS0TW4AAc5z3.png)
bit.ly/31ehFaG
![](https://pbs.twimg.com/media/EGycTe-WoAAEQ-k.png)