DP15208 Historical Econometrics: Instrumental Variables and Regression Discontinuity Designs
This chapter surveys the usage of Instrumental Variables (IVs) and Regression Discontinuity Designs (RDDs) in economic history. I document the positive trends of economic history articles employing these methods using three different samples: top 20 journals in economics, top 5 journals in economic history and top five general interest journals in economics from 2000-2020. I detail two broad phases: seminal articles published from 2001 to 2011, and a second wave of studies refining these techniques appearing from 2012 to today (2020). I discuss some methodological refinements that have appeared recently in the econometrics field—in the IV and RDD fronts. I then present a practical guide on regression diagnostics, acknowledging that there are other useful sources of identification available to tackle potential endogeneity issues.
