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Extensions for Inference in Difference-in-Differences with Few Treated Clusters

Luis Alvarez, Bruno Ferman

arXiv 6 Feb 2023 · Econometrics

arXiv:2302.03131 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In settings with few treated units, Difference-in-Differences (DID) estimators are not consistent, and are not generally asymptotically normal. This poses relevant challenges for inference. While there are inference methods that are valid in these settings, some of these alternatives are not readily available when there is variation in treatment timing and heterogeneous treatment effects; or for deriving uniform confidence bands for event-study plots. We present alternatives in settings with few treated units that are valid with variation in treatment timing and/or that allow for uniform confidence bands.

Citation extraction

23
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appendix boundary found by appendix_command · 76% 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
1Conley, T. G. and Taber, C. R (2011) Inference with Difference in Differences with a Small Number of Policy Changes1.000144100%
2Ferman, B. and Pinto, C (2019) Inference in differences-in-differences with few treated groups and heteroskedasticity self1.000103100%
3Callaway, B. and Sant'Anna, P. H (2021) Difference-in-differences with multiple time periods1.00053100%
4Goodman-Bacon, A (2021) Difference-in-differences with variation in treatment timing0.64422100%
5de Chaisemartin, C. and D'Haultfoeuille, X (2020) Two-way fixed effects estimators with heterogeneous treatment effects0.64422100%
6Freyaldenhoven, S., Hansen, C., Pérez, J. P., and Shapiro, J. M (2021) Visualization, identification, and estimation in the linear panel event-study design0.64422100%
7Montiel Olea, J. L. and Plagborg-Moller, M (2019) Simultaneous confidence bands: Theory, implementation, and an application to svars0.64422100%
8Sun, L. and Abraham, S (2020) Estimating dynamic treatment effects in event studies with heterogeneous treatment effects0.64422100%
9Borusyak, K., Jaravel, X., and Spiess, J (2021) Revisiting event study designs: Robust and efficient estimation0.58531100%
10Ben-Michael, E., Feller, A., and Rothstein, J (2021) The augmented synthetic control method0.40511100%

Showing the top 10 of 23 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
1Inference in Difference-in-Differences with Few Treated Units and Spatial Correlation0.64422
2On the relationship between prediction intervals, tests of sharp nulls and inference on realized treatment effects in settings with few treated units0.64422
3Inference with few treated units0.40511