On Event Study Designs and Distributed-Lag Models: Equivalence, Generalization and Practical Implications

29 Pages Posted: 28 Jan 2019

See all articles by Kurt Schmidheiny

Kurt Schmidheiny

Universität Basel

Sebastian Siegloch

IZA Institute of Labor Economics; University of Mannheim - Department of Economics; ZEW – Leibniz Centre for European Economic Research - Corporate Taxation and Public Finance Research; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 3 versions of this paper

Date Written: January 2019

Abstract

We discuss important features and pitfalls of panel-data event study designs. We derive the following main results: First, event study designs and distributed-lag models are numerically identical leading to the same parameter estimates after correct reparametrization. Second, binning of effect window endpoints allows identification of dynamic treatment effects even when no never-treated units are present. Third, classic dummy variable event study designs can be naturally generalized to models that account for multiple events of different sign and intensity of the treatment, which are particularly interesting for research in labor economics and public finance.

Keywords: applied microeconomics, credibility revolution, distributed-lag, event study

JEL Classification: C23, C51, H00, J08

Suggested Citation

Schmidheiny, Kurt and Siegloch, Sebastian, On Event Study Designs and Distributed-Lag Models: Equivalence, Generalization and Practical Implications (January 2019). CEPR Discussion Paper No. DP13477. Available at SSRN: https://ssrn.com/abstract=3324212

Kurt Schmidheiny (Contact Author)

Universität Basel ( email )

Wirtschaftswissenschaftliche Fakultät
Peter Merian-Weg 6
Basel, CH-4002
Switzerland

HOME PAGE: http://wwz.unibas.ch/schmidheiny/

Sebastian Siegloch

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany

ZEW – Leibniz Centre for European Economic Research - Corporate Taxation and Public Finance Research ( email )

United States

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
261
PlumX Metrics