EconPapers    
Economics at your fingertips  
 

Pre-event Trends in the Panel Event-study Design

Simon Freyaldenhoven, Christian Hansen () and Jesse Shapiro ()

No 24565, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We consider a linear panel event-study design in which unobserved confounds may be related both to the outcome and to the policy variable of interest. We provide sufficient conditions to identify the causal effect of the policy by exploiting covariates related to the policy only through the confounds. Our model implies a set of moment equations that are linear in parameters. The effect of the policy can be estimated by 2SLS, and causal inference is valid even when endogeneity leads to pre-event trends (“pre-trends”) in the outcome. Alternative approaches perform poorly in our simulations.

JEL-codes: C23 C26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm
Date: 2018-04
Note: LS PE POL TWP
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w24565.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
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:nbr:nberwo:24565

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w24565
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-04-24
Handle: RePEc:nbr:nberwo:24565