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Difference-in-Differences Estimators of Intertemporal Treatment Effects

Clément de Chaisemartin, Xavier D'Haultfœuille

arXiv 8 Jul 2020 · Econometrics · publishedThe Review of Economics and Statistics (2021) · 138 citations (OpenAlex)

arXiv:2007.04267 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study treatment-effect estimation using panel data. The treatment may be non-binary, non-absorbing, and the outcome may be affected by treatment lags. We make a parallel-trends assumption, and propose event-study estimators of the effect of being exposed to a weakly higher treatment dose for $\ell$ periods. We also propose normalized estimators, that estimate a weighted average of the effects of the current treatment and its lags. We also analyze commonly-used two-way-fixed-effects regressions. Unlike our estimators, they can be biased in the presence of heterogeneous treatment effects. A local-projection version of those regressions is biased even with homogeneous effects.

Citation extraction

36
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Brantly Callaway \ Pedro HC Sant’Anna (2021) Difference-in-differences with multiple time periods1.000133100%
2Liyang Sun \ Sarah Abraham (2021) Estimating dynamic treatment effects in event studies with heterogeneous treatment effects1.00073100%
3Òscar Jordà (2005) Estimation and inference of impulse responses by local projections0.92843100%
4Giovanni Favara \ Jean Imbs (2015) Credit supply and the price of housing0.87482100%
5Clement de Chaisemartin \ Xavier D'Haultfuille (2020) Two-way fixed effects estimators with heterogeneous treatment effects0.87462100%
6Kirill Borusyak, Xavier Jaravel \ Jann Spiess (2023) Revisiting event study designs: Robust and efficient estimation0.84333100%
7Clément de Chaisemartin \ Xavier D'Haultfuille (2023) Two-way fixed effects and differences-in-differences estimators with several treatments0.81142100%
8James Robins (1986) A new approach to causal inference in mortality studies with a sustained exposure period-application to control of the healthy w…0.73732100%
9Clément de Chaisemartin \ Xavier D'Haultfuille (2023) Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: A survey0.64422100%
10Andrew Goodman-Bacon (2021) Difference-in-differences with variation in treatment timing0.64422100%

Showing the top 10 of 36 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Stacked Triple Differences0.92843
2Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists0.64441
3Difference-in-Differences with Time-varying Continuous Treatments Using Double/Debiased Machine Learning0.51121
4Dynamic Regression Discontinuity: An Event-Study Approach0.40511
5Dynamic Biases of Static Panel Data Estimators0.40511