bw: Estimating Rotemberg Weights for a Bartik "Instrument"

In jjchern/bartik.weight: Estimating Rotemberg Weights for a Bartik "Instrument"

Description

bw() estimates the Rotemberg weights for a Bartik "instrument" outlined in Goldsmith-Pinkham, Sorkin and Swift (2018) and the just-identified IV estimates using local industry shares, which are the actual instruments.

Usage

bw(master, y, x, controls = NULL, weight = NULL, local, Z, global, G)

Arguments

master	The master data frame.
y	A string for outcome variable. It should be a variable in master.
x	A string for the endogenous variable. It should be a variable in master.
controls	A string or character vector for the control variables. controls are optional and should be in master.
weight	A string for the weighted variable. weight is optional and should be in master.
local	The local data frame. It should be in wide format.
Z	A string or character vector for the the local industry shares.
global	The global data frame.
G	A string for the the overall industry growth rates.

Details

The typical Bartik "instrument" has two components: the local industry shares (usually at the level of location-industry or location-year-industry), and the overall industry growth rates (usually at the level of industry or industry-year). The outcome variable and the endogenous variable are at the level of location or location-year.

Because the key variables are at three different levels, bw() proceeds by taking three different datasets: (1) a main master data frame containing the dependent variable (y), the causal variable of interest (x), a set of control variables (controls), and the weighted variables (weight); (2) a local data frame containing the set of local industry shares (Z); and (3) a global data frame containing the overall industry growth rates (G). At the moment, it is necessary to transform the "local" dataset from long format to wide format.

Value

A data frame built from global with two additional variables: alpha (the Rotemberg weights), and beta (the just-identified IV estimates).

Examples

library(bartik.weight)

index = c("czone", "year")
y = "d_sh_empl_mfg"
x = "d_tradeusch_pw"
controls = c("reg_midatl", "reg_encen", "reg_wncen", "reg_satl",
  "reg_escen", "reg_wscen", "reg_mount", "reg_pacif", "l_sh_popedu_c",
  "l_sh_popfborn", "l_sh_empl_f", "l_sh_routine33", "l_task_outsource",
  "t2", "l_shind_manuf_cbp")
weight = "timepwt48"
Z = setdiff(names(ADH_local_wide), index)
G = "trade_"

bw(ADH_master, y, x, controls, weight, ADH_local_wide, Z, ADH_global, G)

jjchern/bartik.weight documentation built on May 17, 2019, 7:28 p.m.