“A Practical Guide to Shift-Share Instruments” (2025), by Kirill Borusyak et al. Economics research paper. Original abstract below, unchanged. A free PDF is available.
A Practical Guide to Shift-Share Instruments
Kirill Borusyak, Peter Hull, Xavier Jaravel · February 1, 2025 · Economics
Abstract
A recent econometric literature shows two distinct paths for identification with shift-share instruments, leveraging either many exogenous shifts or exogenous shares. We present the core logic of both paths and practical takeaways via simple checklists. A variety of empirical settings illustrate key points.
Free PDF DOI: 10.1257/jep.20231370
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