Our website will undergo scheduled maintenance on the afternoon of Thursday, August 11, 2022. During this time, connection to our website and some of its features may be unavailable. Thank you for your patience and we apologize for any inconvenience.

Working Paper

Visualization, Identification, and stimation in the Linear Panel Event-Study Design


Abstract: Linear panel models, and the “event-study plots” that often accompany them, are popular tools for learning about policy effects. We discuss the construction of event-study plots and suggest ways to make them more informative. We examine the economic content of different possible identifying assumptions. We explore the performance of the corresponding estimators in simulations, highlighting that a given estimator can perform well or poorly depending on the economic environment. An accompanying Stata package, xtevent, facilitates adoption of our suggestions.

Keywords: linear panel data models; difference-in-differences; staggered adoption; pre-trends; event study;

JEL Classification: C23; C52;

https://doi.org/10.21799/frbp.wp.2021.44

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Working Papers

Publication Date: 2021-12-20

Number: 21-44