Citation

Discussion Paper Details

Please find the details for DP14710 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Reusing Natural Experiments

Author(s): Davidson Heath, Matthew Ringgenberg, Mehrdad Samadi and Ingrid M Werner

Publication Date: May 2020

Keyword(s): False Positive, identification, Multiple Hypothesis Testing and Natural Experiments

Programme Area(s): Financial Economics

Abstract: After a natural experiment is first used, other researchers often reuse the setting, examining different outcome variables. We examine the consequences of reusing an experimental setting using two extensively studied natural experiments, business combination laws and the Regulation SHO pilot. We apply multiple hypothesis corrections and our findings suggest many results in the existing literature are false positives. We provide guidelines for inference when an experiment is reused using simulation evidence for several popular empirical settings including difference-in-differences regressions, instrumental variables regressions, and regression discontinuity designs.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14710

Bibliographic Reference

Heath, D, Ringgenberg, M, Samadi, M and Werner, I. 2020. 'Reusing Natural Experiments'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14710