Sometimes impacts are big enough in magnitude that they shine through the fog of endogeneity. In that sense, there may be something to this. I'm convinced enough by the Keynes-Hicks argument that I personally think that's probably exactly what this is: impact shining through the fog of endogeneity.
But damn, Paul. It sure makes it tough to talk about good empirical practice when you're so loose with throwing up the scatterplots.
Piketty’s “New” Book
1 hour ago