Bartik Instruments: What, When, Why, and How

Volume: 110, Issue: 8, Pages: 2586 - 2624
Published: Aug 1, 2020
Abstract
The Bartik instrument is formed by interacting local industry shares and national industry growth rates. We show that the typical use of a Bartik instrument assumes a pooled exposure research design, where the shares measure differential exposure to common shocks, and identification is based on exogeneity of the shares. Next, we show how the Bartik instrument weights each of the exposure designs. Finally, we discuss how to assess the...
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Paper Details
Title
Bartik Instruments: What, When, Why, and How
Published Date
Aug 1, 2020
Volume
110
Issue
8
Pages
2586 - 2624
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