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Reducing bias in difference-in-differences models using entropy balancing

Matthew Cefalu, Brian G. Vegetabile, Michael Dworsky, Christine Eibner, Federico Girosi

arXiv 9 Nov 2020 · Statistics — Methodology · 3 citations (OpenAlex)

arXiv:2011.04826 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper illustrates the use of entropy balancing in difference-in-differences analyses when pre-intervention outcome trends suggest a possible violation of the parallel trends assumption. We describe a set of assumptions under which weighting to balance intervention and comparison groups on pre-intervention outcome trends leads to consistent difference-in-differences estimates even when pre-intervention outcome trends are not parallel. Simulated results verify that entropy balancing of pre-intervention outcomes trends can remove bias when the parallel trends assumption is not directly satisfied, and thus may enable researchers to use difference-in-differences designs in a wider range of observational settings than previously acknowledged.

Citation extraction

33
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appendix boundary found by appendix_titled_section at “Appendix” · 66% of the source is main text. Read the extracted text to check this.

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
1Daw, Jamie R, Hatfield, Laura A (2018) Matching and regression to the mean in difference-in-differences analysis0.93511582%
2Hainmueller, Jens (2012) Entropy balancing for causal effects: A multivariate reweighting method to produce balanced samples in observational studies0.8435360%
3Steiner, Peter M, Cook, Thomas D, Shadish, William R (2011) On the importance of reliable covariate measurement in selection bias adjustments using propensity scores0.7373367%
4Stuart, Elizabeth A, Huskamp, Haiden A, Duckworth, Kenneth, Simmons,… (2014) Using propensity scores in difference-in-differences models to estimate the effects of a policy change0.73732100%
5Eibner, Christine, Khodyakov, Dmitry, Taylor, Erin Audrey, Buttorff,… (2018) First Annual Evaluation Report of the Medicare Advantage Value-Based Insurance Design Model Test self0.6938250%
6Rubin, Donald B (2005) Causal inference using potential outcomes: Design, modeling, decisions0.5112250%
7Angrist, Joshua D (2008) Mostly harmless econometrics: An empiricist's companion0.51121100%
8Arkhangelsky, Dmitry, Athey, Susan, Hirshberg, David A, Imbens, Guid… (2019) Synthetic difference in differences0.51121100%
9(2015) Analysis of the bias of matching and difference-in-difference under alternative earnings and selection processes0.40511100%
10Chernew, Michael E, Rosen, Allison B, Fendrick, A Mark (2007) Value-Based Insurance Design: By abandoning the archaic principle that all services must cost the same for all patients, we can…0.40511100%

Showing the top 10 of 33 scored citations.