Local Projections for Applied Economics
介绍局部投影法如何连接宏观与微观经济学中处理动态因果效应的不同方法，帮助研究者用潜在结果和处置效应的语言理解向量自回归和脉冲响应。
The dynamic causal effect of an intervention on an outcome is of paramount interest to applied macro- and microeconomics research. However, this question has been generally approached differently by the two literatures. In making the transition from traditional time series methods to applied microeconometrics, local projections can serve as a natural bridge. Local projections can translate the familiar language of vector autoregressions and impulse responses into the language of potential outcomes and treatment effects. There are gains to be made by both literatures from greater integration of well-established methods in each. This review shows how to make these connections and points to potential areas of further research.