Paul Goldsmith-Pinkham and co-authors have a nice paper on "shift share" or Bartik instruments that I'm working my way through. Whenever I'm doing some econometric exploration, I like to create a simulation where I "know" the right answer and confirm I can recover it with the method. I was doing this for the Bartik instrument and thought other people might find it useful to see a simple example.
Bartik instrument exploration in R
Bartik instrument exploration in R
Bartik instrument exploration in R
Paul Goldsmith-Pinkham and co-authors have a nice paper on "shift share" or Bartik instruments that I'm working my way through. Whenever I'm doing some econometric exploration, I like to create a simulation where I "know" the right answer and confirm I can recover it with the method. I was doing this for the Bartik instrument and thought other people might find it useful to see a simple example.