Bartik Instruments: An Applied Introduction

32 Pages Posted: 18 Feb 2021

Date Written: February 15, 2021

Abstract

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

Breuer, Matthias, Bartik Instruments: An Applied Introduction (February 15, 2021). Available at SSRN: https://ssrn.com/abstract=3786229 or http://dx.doi.org/10.2139/ssrn.3786229

Matthias Breuer (Contact Author)

Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

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