Simple Diagnostics for Two-Way Fixed Effects

Pamela Jakiela

Papers from arXiv.org

Abstract: Difference-in-differences estimation is a widely used method of program evaluation. When treatment is implemented in different places at different times, researchers often use two-way fixed effects to control for location-specific and period-specific shocks. Such estimates can be severely biased when treatment effects change over time within treated units. I review the sources of this bias and propose several simple diagnostics for assessing its likely severity. I illustrate these tools through a case study of free primary education in Sub-Saharan Africa.

Date: 2021-03
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (38)

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http://arxiv.org/pdf/2103.13229 Latest version (application/pdf)

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Working Paper: Simple Diagnostics for Two-Way Fixed Effects (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2103.13229

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