fetwfe: Fused Extended Two-Way Fixed Effects

Calculates the fused extended two-way fixed effects (FETWFE) estimator for unbiased and efficient estimation of difference-in-differences in panel data with staggered treatment adoption. This estimator eliminates bias inherent in conventional two-way fixed effects estimators, while also employing a novel bridge regression regularization approach to improve efficiency and yield valid standard errors. Also implements extended TWFE (etwfe) and bridge-penalized ETWFE (betwfe). Provides S3 classes for streamlined workflow and supports flexible tuning (ridge and rank-condition guarantees), automatic covariate centering/scaling, and detailed overall and cohort-specific effect estimates with valid standard errors. Includes simulation and formatting utilities, extensive diagnostic tools, vignettes, and examples. See Faletto (2025) (<doi:10.48550/arXiv.2312.05985>).

Version: 1.5.0
Depends: R (≥ 4.1.0)
Imports: expm, glmnet, grpreg, Matrix (≥ 1.6-0)
Suggests: bacondecomp, knitr, rmarkdown, dplyr, did
Published: 2025-07-02
DOI: 10.32614/CRAN.package.fetwfe
Author: Gregory Faletto ORCID iD [aut, cre]
Maintainer: Gregory Faletto <gfaletto at gmail.com>
BugReports: https://github.com/gregfaletto/fetwfePackage/issues
License: MIT + file LICENSE
URL: https://github.com/gregfaletto/fetwfePackage
NeedsCompilation: no
Citation: fetwfe citation info
Materials: README NEWS
CRAN checks: fetwfe results

Documentation:

Reference manual: fetwfe.pdf
Vignettes: FETWFE Simulation Vignette (source, R code)
fetwfe: A Package for Fused Extended Two-Way Fixed Effects (source, R code)

Downloads:

Package source: fetwfe_1.5.0.tar.gz
Windows binaries: r-devel: fetwfe_1.0.0.zip, r-release: fetwfe_1.0.0.zip, r-oldrel: fetwfe_1.0.0.zip
macOS binaries: r-release (arm64): fetwfe_1.0.0.tgz, r-oldrel (arm64): fetwfe_1.0.0.tgz, r-release (x86_64): fetwfe_1.5.0.tgz, r-oldrel (x86_64): fetwfe_1.5.0.tgz
Old sources: fetwfe archive

Linking:

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