1
$\begingroup$

Regarding the usefulness of two-way fixed effect (TWFE), Guido Imbens mentioned that TWFE can be good starting point for DiD if the N and T are modest, I am wondering is there any criteria for "modest", how much is modest here?

From this Chaisemartin, 2020, slide 2

However, TWFE can be an attractive model for baseline (control) outcomes when N & T are modest" but not exible for large dimensions.

  • Guido Imbens (Sargan Lecture, RES 2021).
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.