The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Simple Diagnostics for Two-Way Fixed Effects
Abstract
Difference-in-differences estimation is a widely used method of program evaluation. When treatment is implemented in different places at different times, researchers often use two-way fixed effects to control for location-specific and period-specific shocks. Such estimates can be severely biased when treatment effects change over time within treated units. I review the sources of this bias and propose several simple diagnostics for assessing its likely severity. I illustrate these tools through a case study of free primary education in Sub-Saharan Africa.
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Jakiela (2021) proposes evaluating both whether TWFE places negative weights on some treated units and whether the data rejects the constant treatment effects assumption.
“Jakiela (2021) proposes evaluating both whether TWFE places negative weights on some treated units and whether the data rejects the constant treatment effects assumption.”
From What's trending in difference-in-differences? A synthesis of the recent econometrics literature (2023) · cites this paper as Jakiela (2021)
Citations
Cites
Estimating dynamic treatment effects in event studies with heterogeneous treatment effects
Sun, L., & Abraham, S. (2021) · Journal of Econometrics · doi:10.1016/j.jeconom.2020.09.006 · Cited by 5,518
Difference-in-Differences with Variation in Treatment Timing
Goodman-Bacon, A. (2018) · doi:10.3386/w25018 · Cited by 757
Koski, A., Strumpf, E. C., Kaufman, J. S., Frank, J., Heymann, J., & Nandi, A. (2018) · PLOS ONE · doi:10.1371/journal.pone.0197928 · Cited by 67
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How Much Should We Trust Staggered Difference-in-Differences Estimates?
Baker, A. C., Larcker, D. F., & Wang, C. C. Y. (2022) · Journal of Financial Economics · doi:10.1016/j.jfineco.2022.01.004 · Cited by 3,149
What's trending in difference-in-differences? A synthesis of the recent econometrics literature
Roth, J., Sant’Anna, P. H. C., Bilinski, A., & Poe, J. (2023) · Journal of Econometrics · doi:10.1016/j.jeconom.2023.03.008 · Cited by 2,027
“Jakiela (2021) proposes evaluating both whether TWFE places negative weights on some treated units and whether the data rejects the constant treatment effects assumption.”
Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey
de Chaisemartin, C., & D’Haultfœuille, X. (2023) · The Econometrics Journal · doi:10.1093/ectj/utac017 · Cited by 522
Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey
de Chaisemartin, C., & D'Haultfoeuille, X. (2022) · National Bureau of Economic Research · doi:10.3386/w29734 · Cited by 70
Causal models for longitudinal and panel data: a survey
Arkhangelsky, D., & Imbens, G. (2024) · The Econometrics Journal · doi:10.1093/ectj/utae014 · Cited by 50
Metadata
- Authors
- Jakiela, P.
- Affiliations
- Williams College (US)
- Corresponding author
- Jakiela, Pamela
- ORCID
- Jakiela, Pamela
- Publisher
- Williams College
- Published
- 2021-03-30
- OpenAlex
- W3139530545
- Cited by
- 95
- References
- 3
- Citations by year
- 2026: 5 · 2025: 13 · 2024: 27 · 2023: 27 · 2022: 16 · 2021: 6
- Type
- posted content
- Language
- en
- Open access
- closed
- Topics
- Physical Sciences › Mathematics › Statistics and Probability › Advanced Causal Inference Techniques
- Social Sciences › Public Administration › Evaluation and Performance Assessment
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Spatial and Panel Data Analysis
- Keywords
- two-way fixed effects, difference-in-differences, treatment effect heterogeneity, program evaluation, free primary education, sub-Saharan Africa
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