PreprintCited by 95Advanced Causal Inference TechniquesEvaluation and Performance AssessmentSpatial and Panel Data Analysis

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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Crossref · 10.36934/wecon:2021-05

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3 of 3 references verified0 citation errors · 0 not checkable

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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.”

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Metadata

Authors
Jakiela, P.
Affiliations
Williams College (US)
Corresponding author
Jakiela, Pamela
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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