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For the sectors with the **largest absolute Rotemberg weights** — the share instruments that actually drive the estimate — regresses each sector's share on observable unit characteristics to see how strongly exposure correlates with observables: the key credibility check when identification comes from the shares. Both Goldsmith-Pinkham, Sorkin & Swift (2020) and the Borusyak-Hull-Jaravel JEP practical guide recommend checking balance for the high-|Rotemberg-weight| shares, not the shares with the largest average exposure (which earlier versions used): a high-exposure sector with a near-zero weight contributes almost nothing to the estimate, and misspecification there is largely harmless.

Usage

ssb_share_balance(design, covariates, top = 5)

Arguments

design

An [ssb_design()] object.

covariates

Character vector of observable columns in `data`.

top

Number of top-|Rotemberg-weight| sectors to test.

Value

A `data.frame` of slope coefficients and (robust) t-statistics of each covariate in the share regression, one block per tested sector, with the sector's Rotemberg weight in `alpha`.

Examples

sim <- ssb_simulate(n_loc = 80, n_sec = 10, seed = 1)
d <- ssb_design(sim$data, sim$shares, sim$shocks, exogenous = "share")
ssb_share_balance(d, covariates = "w1", top = 3)
#>   sector     alpha covariate         coef          t
#> 1      6 0.5849517        w1  0.005229986  0.5201994
#> 2      3 0.1736046        w1 -0.004444499 -0.3769272
#> 3      8 0.1109170        w1  0.004130552  0.3064055