Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey / Clément de Chaisemartin, Xavier D'Haultfoeuille.

Format:

Book

Author/Creator:

de Chaisemartin, Clément.

Contributor:

National Bureau of Economic Research.

D'Haultfoeuille, Xavier.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29734.

NBER working paper series no. w29734

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

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).

Notes:

Print version record

February 2022.