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Event Studies with Feedback

Irene Botosaru, Laura Liu

arXiv 9 Jan 2026 · Econometrics · publishedAEA Papers and Proceedings (2026)

arXiv:2601.05493 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Event studies often conflate direct treatment effects with indirect effects operating through endogenous covariate adjustment. We develop a dynamic panel event study framework that separates these effects. The framework allows for persistent outcomes and treatment effects and for covariates that respond to past outcomes and treatment exposure. Under sequential exogeneity and homogeneous feedback, we establish point identification of common parameters governing outcome and treatment effect dynamics, the distribution of heterogeneous treatment effects, and the covariate feedback process. We propose an algorithm for dynamic decomposition that enables researchers to assess the relative importance of each effect in driving treatment effect dynamics.

Citation extraction

2
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8
in-text mentions
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distinct cited
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appendix boundary found by appendix_command · 73% 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
1Botosaru, Irene and Liu, Laura (2025) Time-Varying Heterogeneous Treatment Effects in Event Studies self0.9507586%
2Bonhomme, Stéphane (2025) Back to Feedback: Dynamics and Heterogeneity in Panel Data0.40511100%

Showing the top 2 of 2 scored citations.