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Historical Econometrics: Instrumental Variables and Regression Discontinuity Designs

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  • Valencia Caicedo, Felipe

Abstract

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.

Suggested Citation

  • Valencia Caicedo, Felipe, 2020. "Historical Econometrics: Instrumental Variables and Regression Discontinuity Designs," CEPR Discussion Papers 15208, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15208
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    Cited by:

    1. Damian Clarke & Manuel Llorca Jaña & Daniel Pailañir, 2023. "The use of quantile methods in economic history," Historical Methods: A Journal of Quantitative and Interdisciplinary History, Taylor & Francis Journals, vol. 56(2), pages 115-132, April.

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    Keywords

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    JEL classification:

    • A33 - General Economics and Teaching - - Multisubject Collective Works - - - Handbooks
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods

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