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Simple Diagnostics for Two-Way Fixed Effects

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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.

fields

econ.EM 1

years

2024 1

verdicts

ACCEPT 1

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Treatment Effect Estimators as Weighted Outcomes

econ.EM · 2024-11-18 · accept · novelty 7.0

A general framework derives exact outcome weights for double machine learning and generalized random forest estimators, showing that standard implementations are only scale-normalized rather than fully-normalized.

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  • Treatment Effect Estimators as Weighted Outcomes econ.EM · 2024-11-18 · accept · none · ref 50 · internal anchor

    A general framework derives exact outcome weights for double machine learning and generalized random forest estimators, showing that standard implementations are only scale-normalized rather than fully-normalized.