When do we use fixed effects model?
Fixed effects models remove omitted variable bias by measuring changes within groups across time, usually by including dummy variables for the missing or unknown characteristics.
What determines Anova?
A one-way ANOVA evaluates the impact of a sole factor on a sole response variable. It determines whether all the samples are the same. The one-way ANOVA is used to determine whether there are any statistically significant differences between the means of three or more independent (unrelated) groups.
Is the treatment the same when the treatment is continuous?
Whether the treatment is continuous or discrete, it still works the same way. Actually, it is a bit like a simple observational comparison of treated and untreated entities, the only control for other differences between them being the covariates X.
How is the difference in difference model used?
You are estimating the difference over time of the treatment vs control group difference in outcome. As it uses the same underlying logic, but different kinds of variables, it is a “generalized” DID approach. thank you very much for your detailed response! It has helped me!
How to find the mean difference between treatment and control?
To get the estimated mean difference in Y between the treatment and control groups after the intervention, you need to look at β1 + β3. It is possible that you will find that β1 + β3 is significantly different from zero, even though neither β1, nor β3 by itself is.
How is my treatment variable a contineous variable?
However, my treatment variable is a contineous variable, namely it is an index (on the country level) that can take any value between 0 and 6 (not only integer values but also e.g. 2.75, 0.37 etc.). This index measure the strongness of labor regulation and it changes in the respective country according to changes in labor law in this country.