2021/01/01 by Clément de Chaisemartin, Xavier D’Haultfœuille · 3 citations
Mathematics · Economics, Econometrics and Finance · #Advanced Causal Inference Techniques #Spatial and Panel Data Analysis #Statistical Methods and Inference
paper · doi:10.1162/rest_a_01414
Abstract We study treatment-effect estimation using panel data. The treatment may be nonbinary, nonabsorbing, and the outcome may be affected by treatment lags. We make a parallel-trends assumption and propose event-study estimators of the effect of being exposed to a weakly higher treatment dose for ℓ periods. We also propose normalized estimators that estimate a weighted average of the effects of the current treatment and its lags. We also analyze commonly used two-way fixed-effects regressions. Unlike our estimators, they can be biased in the presence of heterogeneous treatment effects. A local-projection version of those regressions is biased even with homogeneous effects.