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Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey

Clément de Chaisemartin and Xavier D'Haultfoeuille

No 29691, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Linear regressions with period and group fixed effects are widely used to estimate policies' 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 show 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.

JEL-codes: C21 C23 (search for similar items in EconPapers)
Date: 2022-01
Note: CF DEV ED EEE EH ITI LS PE POL TWP
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Citations: View citations in EconPapers (69)

Published as Clément de Chaisemartin & Xavier D’Haultfœuille, 2023. "Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey," The Econometrics Journal, vol 26(3), pages C1-C30.

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Related works:
Journal Article: Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey (2023) Downloads
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022) Downloads
Working Paper: Two-way fixed effects and difference in differences with heterogeneous treatment effects: A survey (2022) Downloads
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022) Downloads
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022) Downloads
Working Paper: Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey (2022) Downloads
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