Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305230 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
I4R Discussion Paper Series No. 182
Publisher: 
Institute for Replication (I4R), s.l.
Abstract: 
I would like to thank Hong and Luparello (2024) for their effort in replicating, as well as partially extending, the results in Orr (2022). This replication report makes what I believe to be three key points: 1. The replication package of Orr (2022) is computationally reproducible (up to two minor caveats, which I very much appreciate the authors catching) 2. The demand estimates are sensitive to a 30% cost-share threshold pursued when con- structing input price based IVs. 3. The demand estimation strategy does not work when applied to a different sample (the same industry, but a later time period). - In this brief note, I provide some minor commentary on each of these findings. I focus primarily on point 2, where my interpretation of their results differs slightly from their own. In particular, I believe these results largely show that the cost-share threshold does not matter much quantitativelyas long one is careful to choose thresholds that make economic sensealthough I also acknowledge that the precision of the estimates can be sensitive to this threshold.
Document Type: 
Working Paper

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