Individual skill

jfe-identification

Use when the causal identification or inference design is the bottleneck for a Journal of Financial Economics (JFE) manuscript — natural experiments, IV, staggered DID, RDD, and explicit endogeneity/selection treatment. Stress-tests the design before drafting tables; it does not finalize factor construction or estimators (see jfe-empirical-design).

Journal-of-Financial-Economics-Skills/skills/jfe-identification/SKILL.md

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# Identification & Endogeneity (jfe-identification)

## When to trigger

- The empirical core is OLS + controls with endogeneity hand-waved away
- A DID uses two-way fixed effects with staggered adoption and you have not addressed the heterogeneous-treatment-effects bias
- Your IV's exclusion restriction or relevance is undefended
- Selection into the sample or treatment is plausible and unaddressed
- A referee could say "your X is endogenous to your Y"

## The JFE identification bar

JFE referees expect endogeneity and selection to be treated explicitly, and they expect every plausible alternative explanation to be ruled out — not waved away. Corporate-finance papers are held to a credible-design standard; asset-pricing papers to a disciplined-inference standard (see `jfe-empirical-design`). This skill covers the corporate-finance causal side; the design/estimator side lives in `jfe-empirical-design`.
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