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

Clément de Chaisemartin, Xavier D'Haultfœuille

arXiv 8 Dec 2021 · Econometrics · publishedEconometrics Journal (2022) · 498 citations (OpenAlex)

arXiv:2112.04565 · PDF · DOI · OpenAlex · Extracted main text

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 (2006).

Citation extraction

56
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263
in-text mentions
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distinct cited
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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
1Borusyak, K., X. Jaravel, and J. Spiess (2021) Revisiting event study designs: Robust and efficient estimation1.000363100%
2Callaway, B. and P. H. Sant'Anna (2021) Difference-in-differences with multiple time periods1.000363100%
3Sun, L. and S. Abraham (2021) Estimating dynamic treatment effects in event studies with heterogeneous treatment effects1.000284100%
4de Chaisemartin, C. and X. D'Haultfuille (2021) Difference-in-differences estimators of intertemporal treatment effects1.000265100%
5de Chaisemartin, C. and X. D'Haultfuille (2020) Two-way fixed effects estimators with heterogeneous treatment effects1.000243100%
6Wolfers, J (2006) Did unilateral divorce laws raise divorce rates? a reconciliation and new results1.000153100%
7de Chaisemartin, C. and X. D'Haultfuille (2021) Two-way fixed effects regressions with several treatments1.00063100%
8de Chaisemartin, C., X. D’Haultfoeuille, F. Pasquier, and G. Vazquez… (2022) Difference-in-differences estimators of the effect of a continuous treatment0.874122100%
9Gentzkow, M., J. M. Shapiro, and M. Sinkinson (2011) The effect of newspaper entry and exit on electoral politics0.87452100%
10Rambachan, A. and J. Roth (2019) An honest approach to parallel trends0.87452100%

Showing the top 10 of 56 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
1Comment on Scientific production in the era of large language models Outcome-Triggered Treatment Timing and Spurious Event-Study Dynamics0.64422
2Misclassification in Difference-in-Differences Models0.51121
3Selection and parallel trends0.40511
4Testing for equivalence of pre-trends in Difference-in-Differences estimation0.40511
5Interpreting Event-Studies from Recent Difference-in-Differences Methods0.40511
6Causal Duration Analysis with Diff-in-Diff0.40511
7Correcting invalid regression discontinuity designs with multiple time period data0.40511
8Continuous difference-in-differences with double/debiased machine learning0.40511
92410.148710.40511
10Causal Inference for Qualitative Outcomes0.40511