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

Clément de Chaisemartin and Xavier D’haultfœuille
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Xavier D’haultfœuille: CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique
Authors registered in the RePEc Author Service: Xavier D'Haultfoeuille

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Abstract: Summary Linear 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).

Keywords: Two-way fixed effects regressions; Differences-in-differences; Parallel trends; Heterogeneous treatment effects; Panel data; Repeated-cross section data; Policy evaluation (search for similar items in EconPapers)
Date: 2022
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03873885v1
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Citations: View citations in EconPapers (67)

Published in Econometrics Journal, In press, ⟨10.1093/ectj/utac017⟩

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Related works:
Journal Article: Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey (2023)
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022)
Working Paper: Two-way fixed effects and difference in differences with heterogeneous treatment effects: A survey (2022)
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022)
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022)
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03873885

DOI: 10.1093/ectj/utac017

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