Some Remarks on the Causal Inference for Historical Persistence

Abstract

A growing body of literature examines the relationships between historical events and contemporary economic outcomes. Recent studies estimate the causal effects using detailed historical data and contemporary microdata of individuals and/or households. In this paper, we discuss conceptual and empirical issues inherent in the causal inference following the potential outcomes framework. Using an empirical example, we also illustrate a simple alternative approach to avoid these issues that is coherent with the potential outcomes framework.