Work

Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey

Year: 2022

Type: report

Abstract: Linear regressions with period and group fixed effects are widely used to estimate policies' effects: 26 of the 100 most cited papers published by the American Economic Review from 2015 to 2019 estimate such regressions.It has recently been show that those regressions may produce misleading estimates, if the policy's effect is heterogeneous between groups or over time, as is often the case.This survey reviews a fast-growing literature that documents this issue, and that proposes alternative estimators robust to heterogeneous effects.

Source: National Bureau of Economic Research

DOI: 10.3386/w29691

Authors: Clément de Chaisemartin, Xavier D'Haultfoeuille

Institutions: Institut d'Etudes Politiques de Paris, Département d'économie de Sciences Po, National Bureau of Economic Research

Language: English

Topic: Advanced Causal Inference Techniques

Subfield: Statistics and Probability

Field: Mathematics

Domain: Physical Sciences

Open Access status: green

OpenAlex ID: W4256413215

Cites: 30

Cited by: 43

Related to: 10