On Event Study Designs and Distributed-Lag Models: Equivalence, Generalization and Practical Implications

Kurt Schmidheiny and Sebastian Siegloch

No 12079, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We discuss important features and pitfalls of panel-data event study designs. We derive the following main results: First, event study designs and distributed-lag models are numerically identical leading to the same parameter estimates after correct reparametrization. Second, binning of effect window endpoints allows identification of dynamic treatment effects even when no never-treated units are present. Third, classic dummy variable event study designs can be naturally generalized to models that account for multiple events of different sign and intensity of the treatment, which are particularly interesting for research in labor economics and public finance.

Keywords: applied microeconomics; distributed-lag; event study; credibility revolution (search for similar items in EconPapers)
JEL-codes: C23 C51 H00 J08 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2019-01
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (130)

Published - published as 'On event studies and distributed-lags in two-way fixed effects models: Identification, equivalence, and generalization' in: Journal of Applied Econometrics, 2023, 38 (5), 695-713

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Working Paper: On Event Study Designs and Distributed-Lag Models: Equivalence, Generalization and Practical Implications (2019)
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