Empirical researchers may wonder whether or not a two-way fixed effects estimator (with individual and period fixed effects) is sufficiently sophisticated to isolate the influence of common shocks on the estimation of slope coefficients. If it is not, practitioners need to run the so-called panel...
Two-wayfixedeffectsestimatorswithheterogeneoustreatmenteffects∗ClémentdeChaisemartin†XavierD’Haultfœuille‡March500AbstractLinearregressionswithperiodandgroupfixedeffectsarewidelyusedtoestimatetreat-menteffects.Weshowthattheyestimateweighted
We propose an alternative difference-in-differences estimator, robust to heterogeneous effects and immune to the contamination problem. In the application we consider, the TWFE regression identifies a highly non-convex combination of effects, with large contamination weights, and one of its coefficients...
We study linear regressions with period and group fixed effects, with several treatment variables. We show that under a parallel trends assumption, the coefficient of each treatment identifies the sum of two terms. The first term is a weighted sum of the average effect of that treatment in each...
The limiting null distribution of the usual F statistic for main effects in the two-way layout is shown to have the same limiting distribution when applied to ranks and scores based on ranks as when applied to normal data. The limit is taken as the cell size N increases without bound. ...
Fig. 4 presents a scatterplot of the province fixed effects (FEs) estimates from equations (1), (2). For the arrivals equation, these FEs capture factors that determine mobility flows like connectivity between provinces and their geographical position (Brinkman and Mangum, 2022), the sociodemograp...
stimulus and difference in orientation selectivity. As the difference in orientation selectivity can take only values in a given finite set of values, the problem is one of a two-way analysis of variance with fixed effects in which the response variable is functional. In the following subsection...
causal effectstreatment effectsdouble robustnessstaggered adoptionWe propose a new estimator for average causal effects of a binary treatment with panel data in settings with general treatment patterns. Our approach augments the popular two-way-fixed-effects specification with unit-specific weights t...
We generated constant, heterogeneous, and dynamic effects and calculated bias, mean squared error, and confidence interval coverage of each estimator across 1000 iterations. Results: Two-way fixed effects estimated that Medicaid expansion increased the risk of preterm birth (risk difference [RD], 0.12...
We use the unbiased estimator of each quadratic form as the test statistics. Also, we need to investigate the asymptotic distribution of these statistics under high-dimensional settings. Let nmin=min{n11,…,nab}. Our asymptotic results are studied under an asymptotic regime, where p=p(nmin) ...