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.