Topic:

Overidentification in Shift-Share Designs

Abstract；

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.

Lecturer: Jinyong Hahn

Prof. Jinyong Hahn, Professor and Dean, School of Economics, University of California, Los Angeles, USA, He is a dual member of the World Econometrics Association (ES) and the International Association of Applied Econometrics (IAAE). He has served as co-editor and deputy editor of top economics journals such as Econometrica, Journal of Econometrics and Econometric Theory. Professor Hahn focuses on micrometrology theory, non-parametric/semi-parametric metrology theory, panel model metrology theory, and has made founding contributions.

Time: May 31,2024 15:30-17:00

Venue: B423,Zhixin Building ,Central Campus