Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey

B-Tier
Journal: The Econometrics Journal
Year: 2023
Volume: 26
Issue: 3
Pages: C1-C30

Authors (2)

Clément de Chaisemartin (Sciences Po) Xavier D’Haultfœuille (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

SummaryLinear regressions with period and group fixed effects are widely used to estimate policie’s 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).

Technical Details

RePEc Handle
repec:oup:emjrnl:v:26:y:2023:i:3:p:c1-c30
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25