Kirill Borusyak, Xavier Jaravel, Jann Spiess
arXiv 27 Aug 2021 · Econometrics · publishedThe Review of Economic Studies (2024) · 1,853 citations (OpenAlex)
arXiv:2108.12419 · PDF · DOI · OpenAlex · Extracted main text
We develop a framework for difference-in-differences designs with staggered treatment adoption and heterogeneous causal effects. We show that conventional regression-based estimators fail to provide unbiased estimates of relevant estimands absent strong restrictions on treatment-effect homogeneity. We then derive the efficient estimator addressing this challenge, which takes an intuitive "imputation" form when treatment-effect heterogeneity is unrestricted. We characterize the asymptotic behavior of the estimator, propose tools for inference, and develop tests for identifying assumptions. Our method applies with time-varying controls, in triple-difference designs, and with certain non-binary treatments. We show the practical relevance of our results in a simulation study and an application. Studying the consumption response to tax rebates in the United States, we find that the notional marginal propensity to consume is between 8 and 11 percent in the first quarter - about half as large as benchmark estimates used to calibrate macroeconomic models - and predominantly occurs in the first month after the rebate.
appendix boundary found by appendix_command · 51% of the source is main text. Read the extracted text to check this.
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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Broda, Christian, Parker, Jonathan A (2014) The economic stimulus payments of 2008 and the aggregate demand for consumption | 1.000 | 12 | 3 | 100% |
| 2 | Roth, Jonathan (2022) Pretest with Caution: Event-Study Estimates after Testing for Parallel Trends | 1.000 | 9 | 3 | 100% |
| 3 | Sun, Liyang, Abraham, Sarah (2021) Estimating Dynamic Treatment Effects in Event Studies with Heterogeneous Treatment Effects | 0.909 | 16 | 6 | 75% |
| 4 | Callaway, Brantly, Sant'Anna, Pedro H.C (2021) Difference-in-Differences with Multiple Time Periods and an Application on the Minimum Wage and Employment | 0.909 | 8 | 4 | 75% |
| 5 | (2022) Difference-in-Differences Estimators of Intertemporal Treatment Effects | 0.894 | 7 | 3 | 71% |
| 6 | (2020) Two-way fixed effects estimators with heterogeneous treatment effects | 0.874 | 9 | 6 | 67% |
| 7 | Laibson, David, Maxted, Peter, Moll, Benjamin (2022) A Simple Mapping from MPCs to MPXs | 0.874 | 8 | 2 | 100% |
| 8 | Wooldridge, Jeffrey M (2021) Two-Way Fixed Effects, the Two-Way Mundlak Regression, and Event Study Estimators | 0.843 | 5 | 3 | 60% |
| 9 | Parker, Jonathan A., Souleles, Nicholas S., Johnson, David S., McCle… (2013) Consumer Spending and the Economic Stimulus Payments of 2008 | 0.811 | 4 | 2 | 100% |
| 10 | Marcus, Michelle, Sant'Anna, Pedro H.C (2020) The role of parallel trends in event study settings: An application to environmental economics | 0.737 | 4 | 2 | 75% |
Showing the top 10 of 53 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.