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grantmcdermott committed Jan 11, 2023
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Expand Up @@ -380,12 +380,12 @@ A final point to note about fixed effects is that **etwfe** defaults to using
group-level (i.e., cohort-level) fixed effects like `first.treat`, rather than
unit-level fixed effects like `countyreal`. This design decision reflects a neat
ancillary result in Wooldridge (2021), which proves the equivalence between the
two types of fixed-effects for linear cases. Group-level effects have the virtue
two types of fixed effects for linear cases. Group-level effects have the virtue
of being faster to estimate, since there are fewer factor levels. Moreover, they
are _required_ per the underlying ETWFE theory for nonlinear model families like
Poisson. Still, you can specify unit-level fixed effects for the linear case
through the `ivar` argument. Again, we can easily confirm that this yields the
same estimated treatment effects as the group-level default (although the
are _required_ for nonlinear model families like Poisson per the underlying
ETWFE theory. Still, you can specify unit-level fixed effects for the linear
case through the `ivar` argument. Again, we can easily confirm that this yields
the same estimated treatment effects as the group-level default (although the
standard errors will be slightly different).

```{r}
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