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

Clément de Chaisemartin and Xavier D’Haultfœuille

The Econometrics Journal, 2023, vol. 26, issue 3, C1-C30

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).

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: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (41)

Downloads: (external link)
http://hdl.handle.net/10.1093/ectj/utac017 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:emjrnl:v:26:y:2023:i:3:p:c1-c30.

Access Statistics for this article

The Econometrics Journal is currently edited by Jaap Abbring

More articles in The Econometrics Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().