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

Kurt Schmidheiny and Sebastian Siegloch

No 12079, IZA Discussion Papers from IZA Network @ LISER

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
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (135)

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

Downloads: (external link)
https://docs.iza.org/dp12079.pdf (application/pdf)

Related works:
Working Paper: On Event Study Designs and Distributed-Lag Models: Equivalence, Generalization and Practical Implications (2019)
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:iza:izadps:dp12079

Access Statistics for this paper

More papers in IZA Discussion Papers from IZA Network @ LISER Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().