Full Citation

Title: Broken or Fixed Effects?

Citation Type: Journal Article

Publication Year: 2019

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: We replicate eight influential papers to provide empirical evidence that, in the presence of heterogeneous treatment effects, OLS with fixed effects (FE) is generally not a consistent estimator of the average treatment effect (ATE). We propose two alternative estimators that recover the ATE in the presence of group-specific heterogeneity. We document that heterogeneous treatment effects are common and the ATE is often statistically and economically different from the FE estimate. In all but one of our replications, there is statistically significant treatment effect heterogeneity and, in six, the ATEs are either economically or statistically different from the FE estimates.

Url: https://www.degruyter.com/document/doi/10.1515/jem-2017-0002/html

Url: https://doi.org/10.1515/jem-2017-0002

User Submitted?: No

Authors: Gibbons, Charles E.; Suarez Serrato, Juan Carlos; Urbancic, Michael B.

Periodical (Full): Journal of Econometric Methods

Issue: 1

Volume: 8

Pages: 201700002

Data Collections: IPUMS USA

Topics: Methodology and Data Collection, Other

Countries: