Hebous, Shafik; Zimmermann, Tom - CESifo - 2014
approach in which the narrative time series is used as an instrument for an endogenous series of interest. We construct … confidence bands for the case in which the narrative shock and the endogenous variable of interest are only weakly correlated. We … apply the method to four narrative tax measures recently constructed by Romer and Romer (2010), Cloyne (2013), and Mertens …