On the Use of Two-Way Fixed Effects Regression Models for Causal Inference with Panel Data

The two-way linear fixed effects regression (2FE) has become a default method for estimating causal effects from panel data. Many applied researchers use the 2FE estimator to adjust for unobserved unit-specific and time-specific confounders at the same time. Unfortunately, we demonstrate that the ab...

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Bibliographic Details
Main Authors: Imai, Kosuke, Kim, In Song
Other Authors: Massachusetts Institute of Technology. Department of Political Science
Format: Article
Language:English
Published: Cambridge University Press (CUP) 2021
Online Access:https://hdl.handle.net/1721.1/138140.2