Bartik Instruments: An Applied Introduction
32 Pages Posted: 18 Feb 2021
Date Written: February 15, 2021
This article provides an applied introduction to Bartik instruments. The instruments attempt to reduce familiar endogeneity concerns in diﬀerential exposure designs. They isolate treatment variation due to the diﬀerential impact of common shocks on units with distinct pre-determined exposures. As a result, the instruments are purged of variation driven by possibly confounded factors varying across units over time. Given their broad applicability, Bartik instruments promise to provide researchers with a versatile new tool in their empirical toolbox to investigate relevant accounting questions.
Keywords: Bartik Instruments, Shift Shares, Simulated Instruments
JEL Classification: C51, M40
Suggested Citation: Suggested Citation