On Thursday, I was lucky to present Fused Extended Two-Way Fixed Effects to the causal inference reading group at USC. I’m very grateful to Angela Zhou, Zijun Gao, and Dennis Shen for hosting me, Jacob Bien for putting me in touch with the hosts and coordinating, and everyone who came for their attention and insightful questions.
I wanted to post my slides (click here to see them) for two main reasons:
- In the slides I made an effort to introduce the extended two-way fixed effects model a bit more intuitively than I did in the current draft of the paper.
- I also made an effort to present the intuition behind the theory–using a change in coordinates to express FETWFE as a standard bridge regression. I think in some ways this makes it easier to describe and understand the method. In the paper I tried to isolate this idea to the appendix in order to focus on the causal inference, but in hindsight I’m not sure whether this made it easier or harder to focus on the most important ideas of the paper and the method.
I hope you find the slides useful, and please let me know if you have any questions about them!