11.5 Estimation & Basics 2

  • FE estimator identifies average treatment effect on the treated if exogeneity of time-varying idiosyncratic errors can be maintained (Gangl 2010, 34)
  • Standard assumptions: Selection only observable time-variant variables (time invariant-variable should not matter) (+ linearity and additivity of treatment effect)(e.g. Keele 2015b, 10)43
  • BUT causal inference with panel data (fixed effects models etc.) is an ongoing research field (K. Imai and Kim 2019a, 2019b)

References

Gangl, Markus. 2010. “Causal Inference in Sociological Research.” Annual Review of Sociology 36 (1): 21–47.

Imai, Kosuke, and In Song Kim. 2019a. “On the Use of Two-Way Fixed Effects Regression Models for Causal Inference with Panel Data.” Harvard University IQSS Working Paper). Cambridge, MA. Retrieved from https …; mit.edu.

Imai, Kosuke, and In Song Kim. 2019b. “When Should We Use Unit Fixed Effects Regression Models for Causal Inference with Longitudinal Data?” Am. J. Pol. Sci. 63 (2): 467–90.

Keele, Luke. 2015b. “The Statistics of Causal Inference: A View from Political Methodology.” Polit. Anal. 23 (3): 313–35.