Episode 11: Why is our number this number?

Welcome to the 11th episode of The Mixtape with Scott, season 5, “The Odd Couple” featuring Caitlin Myers! This week we continue the riveting material from last week where we walked through a decomposition of the twoway fixed effects estimator when it’s 2 period, diff-in-diff with a continuous treatment! Yes, you heard me right — be still my beating heart. Scott's Mixtape Substack is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.Me and Caitlin continue to go through this deck that Claude made for us explaining the new Callaway, Goodman-Bacon and Sant’Anna paper, forthcoming at AER, about continuous treatment diff-in-diff. Mainly, though, we are just working our way painstakingly slow through this Frisch-Waugh-Lovell decomposition of the OLS regression to better understand just what OLS is doing.I thought this episode was pretty interesting though your mileage may vary. I mean, if you don’t find two economists trying to help each other understand an econometrics paper, then probably the floor on this episode could be a little low. But that said, I did enjoy it. We both really seemed to help one another better understand the decomposition formula, plus we got to see it with our own eyes. And Claude made some really intuitive graphics that helped both of us. So check it out! As always thanks for tuning in!Scott's Mixtape Substack is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Get full access to Scott's Mixtape Substack at causalinf.substack.com/subscribe