Questions tagged [difference-in-difference]

It is about the difference-in-difference method which is quite popular for quasi-experimental studies

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What does "inter alia" in "difference-indifference" testing?

today my paper get rejected due to this reason when I used the Difference-in-Difference as my methodology In addition, it would need to address concerns about causal estimates as there are a number ...
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How many leads we use for parallel trends testing in daily data (difference-in-differences)?

In a difference-in-differences setting, if we deal with yearly data, we normally test the parallel trends assumption for 3 or 4 years before the event dates. However, when dealing with daily data, how ...
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53 views

Are there any papers which used the event study methodology NOT in a financial market context?

I was advised to implement an event study in the context of air pollution levels after an event had happened. Now my problem is, that I can not really find any introductory literature (or papers), ...
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What can explain a wrong sign on difference-in-difference estimator?

I am trying to estimate the casual impact of treatment T on outcome Y based on an unbalanced panel data. The data consists of two subsamples: subsample A and subsample B. Based on context of the ...
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1answer
153 views

What are some important papers using difference-in-difference in economics?

I'm new to difference-in-difference method and wanted to familiarize myself with the literature. I'm familiar with Mostly Harmless Econometrics and the papers on DiD discussed in the book. I would ...
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In difference-in-difference method, should I code treatment exposure as 0 or missing for pre treatment rounds?

In my data, there are some pre-treatment rounds, and some post-treatment rounds. I use months of exposure to treatment in my analysis. So for post-treatment rounds, I have positive values for months ...
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1answer
28 views

How to explain the Difference-in-Difference for two groups two periods to undergraduate students?

I was asked to have a talk with some undergraduate students in an econometrics class regarding the standard Difference-in-Differences. Even I understand what it is and I am quite familiar with it, but ...
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Missing values in difference-in-differences

To give a background of the problem: I'm performing a difference-in-differences analysis to estimate the effect of a treatment, say A. I have a panel data with 5 rounds and about 3000 observations in ...
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2answers
35 views

Reverse DiD: or using always treated as control

I would be interested also in the generalised case, but let's start with 2x2 to keep it simple. Say you have two groups $i \in \{1,2\}$ and two time periods $t$ and $t-1$, as the classical DiD case. ...
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1answer
282 views

What shoud we do when the expected treatment overlaps control sample in DID?

In a generalized Difference-in-Differences in Dasgupta,2019 paper, he documented that control countries did not have a leniency law introduced over 2 years before to 5 years after the introduction of ...
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Joint significance test in a difference-in-differences setting

I ran the following difference-in-differences regression in software and have some questions about the interpretation of the resulting coefficients and their (joint) significance: $$ P_{it} = \gamma_i ...
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1answer
54 views

Two-year difference-in-differences model design

Is there some literature about two-year difference-in-differences (DiD) models? Suppose a policy was implemented in 1982, but not strictly enforced among all people. Can I still estimate a DiD model ...
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2answers
95 views

In difference-in-differences approach, would it be possible to add a dummy variable indicating whether a data point belong to treatment group?

Since there is the possibility that there are some factors result in whether a data point belong to treatment group, I think we should add a dummy variable indicating whether a data point belong to ...
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133 views

Difference-in-Differences on State Sales Tax Rates

In an attempt to evaluate a potential U.S. National Sales tax rate, it was suggested on this forum before that I consider a difference-in-differences on state sales tax rates before and after they ...