AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Event Studies with Feedback
AEA Papers and Proceedings
(pp. 70–74)
Abstract
Event studies often conflate direct treatment effects with indirect effects operating through endogenous covariate adjustment. We develop a dynamic panel event study framework that separates these effects. The framework allows for persistent outcomes and treatment effects and for covariates that respond to past outcomes and treatment exposure. Under sequential exogeneity and homogeneous feedback, we establish point identification of common parameters governing outcome and treatment effect dynamics, the distribution of heterogeneous treatment effects, and the covariate feedback process. We propose an algorithm for dynamic decomposition that enables researchers to assess the relative importance of each effect in driving treatment effect dynamics.Citation
Botosaru, Irene, and Laura Liu. 2026. "Event Studies with Feedback." AEA Papers and Proceedings 116: 70–74. DOI: 10.1257/pandp.20261110Additional Materials
JEL Classification
- C21 Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
- C23 Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models