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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 29734, 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 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).

JEL-codes: C21 C23 (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-ban and nep-ecm
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Related works:
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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