A Practical Guide to Shift-Share Instruments
A recent econometric literature shows two distinct paths for identification with shift-share instruments, leveraging either many exogenous shifts or exogenous shares. We present the core logic of both paths and practical takeaways via simple checklists. A variety of empirical settings illustrate key points.
Authors
- Peter Hull (ORCID: https://orcid.org/0000-0002-3896-9373)
- Kirill Borusyak
- Xavier Jaravel (ORCID: https://orcid.org/0000-0001-9228-2137)
Institutions
- Brown University (US)
- London School of Economics and Political Science (GB)
- University of California, Berkeley (US)
Publication Details
- Journal
- The Journal of Economic Perspectives
- Published
- 2025-02-01
- DOI
- https://doi.org/10.1257/jep.20231370
- Citations
- 78
- Primary Topic
- Firm Innovation and Growth
- Type
- article
- Field-Weighted Citation Impact
- 222.31