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Estimating Dynamic Treatment Effects in Event Studies with Heterogeneous Treatment Effects

Liyang Sun, Sarah Abraham

arXiv 16 Apr 2018 · Econometrics · publishedJournal of Econometrics (2020) · 5,002 citations (OpenAlex)

arXiv:1804.05785 · PDF · DOI · OpenAlex · Extracted main text

Abstract

To estimate the dynamic effects of an absorbing treatment, researchers often use two-way fixed effects regressions that include leads and lags of the treatment. We show that in settings with variation in treatment timing across units, the coefficient on a given lead or lag can be contaminated by effects from other periods, and apparent pretrends can arise solely from treatment effects heterogeneity. We propose an alternative estimator that is free of contamination, and illustrate the relative shortcomings of two-way fixed effects regressions with leads and lags through an empirical application.

Citation extraction

28
references
98
in-text mentions
28
distinct cited
1
self-citations
15,045
main-text words

appendix boundary found by appendix_command · 69% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Callaway and Sant'Anna (2020) Difference-in-Differences With Multiple Time Periods and an Application on the Minimum Wage and Employment1.000184100%
2Dobkin, Finkelstein, Kluender and Notowidigdo (2018) The Economic Consequences of Hospital Admissions1.000183100%
3Borusyak and Jaravel (2017) Revisiting Event Study Designs1.00093100%
4Roth (2019) Pre-test with Caution: Event-study Estimates After Testing for Parallel Trends0.92843100%
5Athey and Imbens (2018) Design-based Analysis in Difference-In-Differences Settings with Staggered Adoption0.87492100%
6Goodman-Bacon (2018) Difference-in-Differences with Variation in Treatment Timing0.87482100%
7de Chaisemartin and D'Haultfuille (2020) Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects0.87472100%
8Bailey and Goodman-Bacon (2015) The War on Poverty's Experiment in Public Medicine: Community Health Centers and the Mortality of Older Americans0.64422100%
9Heckman, Ichimura and Todd (1997) Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme0.64422100%
10Abadie (2005) Semiparametric Difference-in-Differences Estimators0.64422100%

Showing the top 10 of 28 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey1.000284
2Robust Inference for Weighted Estimands1.000155
3Efficient Difference-in-Differences and Event Study Estimators1.000144
4Difference-in-Differences with Multiple Time Periods1.000133
5Design-based Analysis in Difference-In-Differences Settings with Staggered Adoption1.000114
6What's Trending in Difference-in-Differences? A Synthesis of the Recent Econometrics Literature1.000113
7Difference-in-Differences Designs: A Practitioner's Guide1.000114
8Instrumented Difference-in-Differences with Heterogeneous Treatment Effects1.000105
9Difference-in-Differences Estimators of Intertemporal Treatment Effects1.00073
10When Can We Use Two-Way Fixed-Effects (TWFE): A Comparison of TWFE and Novel Dynamic Difference-in-Differences Estimators1.00073