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Treatment Effects in Staggered Adoption Designs with Non-Parallel Trends

Brantly Callaway, Emmanuel Selorm Tsyawo

arXiv 5 Aug 2023 · Econometrics · 1 citations (OpenAlex)

arXiv:2308.02899 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper considers identifying and estimating causal effect parameters in a staggered treatment adoption setting -- that is, where a researcher has access to panel data and treatment timing varies across units. We consider the case where untreated potential outcomes may follow non-parallel trends over time across groups. This implies that the identifying assumptions of leading approaches such as difference-in-differences do not hold. We mainly focus on the case where untreated potential outcomes are generated by an interactive fixed effects model and show that variation in treatment timing provides additional moment conditions that can be used to recover a large class of target causal effect parameters. Our approach exploits the variation in treatment timing without requiring either (i) a large number of time periods or (ii) requiring any extra exclusion restrictions. This is in contrast to essentially all of the literature on interactive fixed effects models which requires at least one of these extra conditions. Rather, our approach directly applies in settings where there is variation in treatment timing. Although our main focus is on a model with interactive fixed effects, our idea of using variation in treatment timing to recover causal effect parameters is quite general and could be adapted to other settings with non-parallel trends across groups such as dynamic panel data models.

Citation extraction

43
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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
1Callaway, Brantly, Karami, Sonia (2023) Treatment effects in interactive fixed effects models with a small number of time periods self1.000213100%
2Callaway, Brantly, Sant'Anna, Pedro HC (2021) Difference-in-differences with multiple time periods self0.87452100%
3Brown, Nicholas, Butts, Kyle (2022) A unified framework for dynamic treatment effect estimation in interactive fixed effect models0.81142100%
4Sun, Liyang, Abraham, Sarah (2021) Estimating dynamic treatment effects in event studies with heterogeneous treatment effects0.81142100%
5Ahn, Seung C, Lee, Young H, Schmidt, Peter (2013) Panel data models with multiple time-varying individual effects0.73732100%
6(2020) Two-way fixed effects estimators with heterogeneous treatment effects0.73732100%
7Gobillon, Laurent, Magnac, Thierry (2016) Regional policy evaluation: Interactive fixed effects and synthetic controls0.73732100%
8Imbens, Guido, Kallus, Nathan, Mao, Xiaojie (2021) Controlling for unmeasured confounding in panel data using minimal bridge functions: From two-way fixed effects to factor models0.73732100%
9Xu, Yiqing (2017) Generalized synthetic control method: Causal inference with interactive fixed effects models0.73732100%
10Bertrand, Marianne, Duflo, Esther, Mullainathan, Sendhil (2004) How much should we trust differences-in-differences estimates?0.64422100%

Showing the top 10 of 43 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
1Beyond Parallel Trends: An Identification-Strategy-Robust Approach to Causal Inference with Panel Data0.64422
2Quantile and Distribution Treatment Effects on the Treated with Possibly Non-Continuous Outcomes0.51121
3Estimating Treatment Effects in Panel Data Without Parallel Trends0.40511