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American Economic Review· 2020Q1

Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects

Clément de Chaisemartin, Xavier D’Haultfœuille

Short summary

Standard linear regressions with period and group fixed effects can produce misleading treatment effect estimates, even showing negative coefficients when all underlying effects are positive.

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Field: Statistics and Probability

Statistics and ProbabilityMathematics