A1635
Title: Interactive fixed effects models for macro-policy analysis
Authors: Jisang Yu - Korea University (Korea, South) [presenting]
Gyuhyeong Goh - Kansas State University (United States)
Abstract: Interactive Fixed Effects (IFE) models have become a popular methodological approach in causal inference literature. While Two-Way Fixed Effects (TWFE) has dominated work with panel data, approaches like Synthetic Control Methods and variants thereof build on models with Interactive Fixed Effects. The potential application of Interactive Fixed Effects models to examine policy impacts in macroeconomics is explored, specifically focusing on how trade and climate policies affect economic outcomes using country-level data. Differences in estimates across TWFE and IFE are examined.
