arXiv 20 May 2024 · Econometrics · 1 citations (OpenAlex)
arXiv:2405.12083 · PDF · DOI · OpenAlex · Extracted main text
Many studies exploit variation in policy adoption timing across units as an instrument for treatment. This paper formalizes the underlying identification strategy as an instrumented difference-in-differences (DID-IV). In this design, a Wald-DID estimand, which scales the DID estimand of the outcome by the DID estimand of the treatment, captures the local average treatment effect on the treated (LATET). We extend the canonical DID-IV design to multiple period settings with the staggered adoption of the instrument across units. Moreover, we propose a credible estimation method in this design that is robust to treatment effect heterogeneity. We illustrate the empirical relevance of our findings, estimating returns to schooling in the United Kingdom. In this application, the two-way fixed effects instrumental variable regression, the conventional approach to implement DID-IV designs, yields a negative estimate. By contrast, our estimation method indicates a substantial gain from schooling.
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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 | Callaway, Brantly and Sant'Anna, Pedro H C Difference-in-Differences with Multiple Time Periods | 1.000 | 17 | 4 | 100% |
| 2 | Sun, Liyang and Abraham, Sarah Estimating Dynamic Treatment Effects in Event Studies with Heterogeneous Treatment Effects | 1.000 | 10 | 5 | 100% |
| 3 | Black, Sandra E and Devereux, Paul J and Salvanes, Kjell G Why the Apple Doesn't Fall Far: Understanding Intergenerational Transmission of Human Capital | 1.000 | 7 | 4 | 100% |
| 4 | Lundborg, Petter and Nilsson, Anton and Rooth, Dan-Olof Parental Education and Offspring Outcomes: Evidence from the Swedish Compulsory School Reform | 1.000 | 6 | 3 | 100% |
| 5 | Bhuller, Manudeep and Havnes, Tarjei and Leuven, Edwin and Mogstad,… Broadband Internet: An Information Superhighway to Sex Crime? | 1.000 | 5 | 3 | 100% |
| 6 | Sho Miyaji Two-Way Fixed Effects Instrumental Variable Regressions in Staggered DID-IV Designs self | 0.941 | 6 | 4 | 83% |
| 7 | Imbens, Guido W and Angrist, Joshua D Identification and Estimation of Local Average Treatment Effects | 0.928 | 5 | 3 | 80% |
| 8 | de Chaisemartin, Clément and D'Haultfœuille, Xavier Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects | 0.928 | 4 | 3 | 100% |
| 9 | Oreopoulos, Philip Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter | 0.918 | 31 | 5 | 77% |
| 10 | Duflo, Esther Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment | 0.909 | 12 | 4 | 75% |
Showing the top 10 of 38 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Two-way fixed effects instrumental variable regressions in staggered DID-IV designs | 1.000 | 14 | 4 |
| 2 | Triple Instrumented Difference-in-Differences | 1.000 | 14 | 3 |
| 3 | Doubly Robust Instrumented Difference-in-Differences | 1.000 | 13 | 3 |
| 4 | Difference-in-Differences Designs: A Practitioner's Guide | 0.405 | 1 | 1 |
| 5 | Efficient Difference-in-Differences and Event Study Estimators | 0.000 | 2 | 1 |