DP15208 Historical Econometrics: Instrumental Variables and Regression Discontinuity Designs
|Author(s):||Felipe Valencia Caicedo|
|Publication Date:||August 2020|
|Keyword(s):||econometrics, economic history, instrumental variables, Regression Discontinuity Designs, survey|
|JEL(s):||A33, C1, C26, C36, N01|
|Programme Areas:||Economic History|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=15208|
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.