{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,8]],"date-time":"2026-05-08T13:44:54Z","timestamp":1778247894630,"version":"3.51.4"},"reference-count":18,"publisher":"Wiley","issue":"2","license":[{"start":{"date-parts":[[2025,11,4]],"date-time":"2025-11-04T00:00:00Z","timestamp":1762214400000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by\/4.0\/"},{"start":{"date-parts":[[2025,11,4]],"date-time":"2025-11-04T00:00:00Z","timestamp":1762214400000},"content-version":"tdm","delay-in-days":0,"URL":"http:\/\/doi.wiley.com\/10.1002\/tdm_license_1.1"}],"content-domain":{"domain":["onlinelibrary.wiley.com"],"crossmark-restriction":true},"short-container-title":["J of Applied Econometrics"],"published-print":{"date-parts":[[2026,3]]},"abstract":"<jats:title>ABSTRACT<\/jats:title>\n                  <jats:p>In the present paper, we study the so\u2010called \u201cPCDID\u201d approach to treatment effects estimation in panels with interactive effects where the factors represent trends whose effect need not be parallel across the cross\u2010sectional units. Our interest in this step\u2010wise approach originates with the observation that the interactive effects are ignored in the first step, which should not be possible without affecting subsequent steps. We confirm that the estimated second\u2010step factors are inconsistent in the empirically relevant scenario where the included covariates are correlated with the true factors. Interestingly enough, though, fixed effects demeaning, which is in theory unnecessary since fixed effects are special interactive effects, is shown to restore consistency of the final\u2010step average treatment effects estimate; however, only under special circumstances. As a general solution to the inconsistency of the estimated factors, we propose an iterated PCDID version.<\/jats:p>","DOI":"10.1002\/jae.70022","type":"journal-article","created":{"date-parts":[[2025,11,4]],"date-time":"2025-11-04T17:34:20Z","timestamp":1762277660000},"page":"203-208","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":1,"title":["The PCDID Approach to Treatment Effects Estimation: A Further Investigation"],"prefix":"10.1002","volume":"41","author":[{"given":"Tilman","family":"Bretschneider","sequence":"first","affiliation":[{"name":"Department of Economics Lund University  Lund Sweden"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Joakim","family":"Westerlund","sequence":"additional","affiliation":[{"name":"Department of Economics Lund University  Lund Sweden"},{"name":"Economics Discipline Group Deakin University  Victoria Burwood Australia"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"311","published-online":{"date-parts":[[2025,11,4]]},"reference":[{"key":"e_1_2_8_2_1","doi-asserted-by":"publisher","DOI":"10.1111\/0034-6527.00321"},{"key":"e_1_2_8_3_1","doi-asserted-by":"publisher","DOI":"10.1017\/CBO9780511810800"},{"key":"e_1_2_8_4_1","doi-asserted-by":"publisher","DOI":"10.3982\/ECTA8968"},{"key":"e_1_2_8_5_1","doi-asserted-by":"publisher","DOI":"10.1111\/1468-0262.00392"},{"key":"e_1_2_8_6_1","doi-asserted-by":"publisher","DOI":"10.3982\/ECTA6135"},{"key":"e_1_2_8_7_1","doi-asserted-by":"publisher","DOI":"10.1111\/1468-0262.00273"},{"key":"e_1_2_8_8_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1468-0262.2004.00528.x"},{"key":"e_1_2_8_9_1","first-page":"25","article-title":"Declining Caseloads\/Increased Work: What Can We Conclude About the Effects of Welfare Reform?","volume":"7","author":"Blank R. 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