TY - JOUR
T1 - Two-way fixed effects and differences-in-differences with heterogeneous treatment effects
T2 - a survey
AU - de Chaisemartin, Clément
AU - D’Haultfœuille, Xavier
N1 - Publisher Copyright:
© The Author(s) 2022. Published by Oxford University Press on behalf of Royal Economic Society. All rights reserved.
PY - 2023/9/1
Y1 - 2023/9/1
N2 - 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 shown 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. We use those alternative estimators to revisit Wolfers (2006a).
AB - 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 shown 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. We use those alternative estimators to revisit Wolfers (2006a).
KW - Two-way fixed effects regressions
KW - differences-in-differences
KW - heterogeneous treatment effects
KW - panel data
KW - parallel trends
KW - policy evaluation
KW - repeated-cross section data
U2 - 10.1093/ectj/utac017
DO - 10.1093/ectj/utac017
M3 - Article
AN - SCOPUS:85179827698
SN - 1368-4221
VL - 26
SP - C1-C30
JO - Econometrics Journal
JF - Econometrics Journal
IS - 3
ER -