When Can We Use Two-Way Fixed-Effects (TWFE): A Comparison of TWFE and Novel Dynamic Difference-in-Differences Estimators
何时可以使用双向固定效应:与新型动态双重差分估计量的比较
The conventional Two-Way Fixed-Effects (TWFE) estimator has come under scrutiny lately. Recent literature has revealed potential shortcomings of TWFE when the treatment effects are heterogeneous. Scholars have developed new advanced dynamic Difference-in-Differences (DiD) estimators to tackle these potential shortcomings. However, confusion remains in applied research as to when the conventional TWFE is biased and what issues the novel estimators can and cannot address. In…