I am a bit confused about what controls should I include in my event-study (Callaway and Santanna 2021) specifications.
One of my models tries to understand the impact of the opening of a public facility (treatment is municipal-level) on also municipal-level outcomes. I am worried about time-varying cofounders like municipal GDP, municipal population growth etc that may affect the outcome in treated cities. Would municipality-year fixed effects account for those? Or should I actually insert these covariates in the model?
The other model is similar, but tries to assess the impact of the public facilities roll-out (municipal) at individual-level outcomes (such as if the person is employed, etc). Since the outcome is at a more granular level than the treatment, are factors like municipal GDP growth a problem? Municipality-year fixed effects are necessary?
Thanks in advance
One of my models tries to understand the impact of the opening of a public facility (treatment is municipal-level) on also municipal-level outcomes. I am worried about time-varying cofounders like municipal GDP, municipal population growth etc that may affect the outcome in treated cities. Would municipality-year fixed effects account for those? Or should I actually insert these covariates in the model?
The other model is similar, but tries to assess the impact of the public facilities roll-out (municipal) at individual-level outcomes (such as if the person is employed, etc). Since the outcome is at a more granular level than the treatment, are factors like municipal GDP growth a problem? Municipality-year fixed effects are necessary?
Thanks in advance
