Panel treatment effects measurement: Factor or linear projection modelling?
面板处理效应测量:因子模型还是线性投影?
Summary We discuss methods of measuring the treatment effects of a unit through the use of other units in panel data by either the factor‐based (FB) approach or the linear projection (LP) approach under different sample configurations of cross‐sectional dimension and time series dimension . We show that the LP approach in general yields smaller mean square prediction error than the FB approach when either both and are large or fixed and or fixed and large. The Monte Carlo…