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Semiparametric Bayesian Difference-in-Differences

Christoph Breunig, Ruixuan Liu, Zhengfei Yu

arXiv 5 Dec 2024 · Econometrics

arXiv:2412.04605 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper studies semiparametric Bayesian inference for the average treatment effect on the treated (ATT) within the difference-in-differences (DiD) research design. We propose two new Bayesian methods with frequentist validity. The first one places a standard Gaussian process prior on the conditional mean function of the control group. The second method is a double robust Bayesian procedure that adjusts the prior distribution of the conditional mean function and subsequently corrects the posterior distribution of the resulting ATT. We prove new semiparametric Bernstein-von Mises (BvM) theorems for both proposals. Monte Carlo simulations and an empirical application demonstrate that the proposed Bayesian DiD methods exhibit strong finite-sample performance compared to existing frequentist methods. We also present extensions of the canonical DiD approach, incorporating both the staggered design and the repeated cross-sectional design.

Citation extraction

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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
1Sant’Anna and Zhao (2020) Doubly robust difference-in-differences estimators1.000125100%
2Abadie (2005) Semiparametric difference-in-differences estimators1.00065100%
3Heckman, Ichimura, and Todd (1997) Matching as an econometric evaluation estimator: Evidence from evaluating a job training programme0.92844100%
4Breunig, Liu, and Yu (2025) Double robust Bayesian inference on average treatment effects self0.89421971%
5Rassmusen and Williams (2006) Gaussian processes for machine learning0.8746367%
6Kleijn and van der Vaart (2006) Misspecification in infinite-dimensional Bayesian statistics0.8434475%
7Yiu, Fong, Holmes, and Rousseau (2023) Semiparametric posterior corrections0.8434375%
8Ray and van der Vaart (2020) Semiparametric Bayesian causal inference0.79416750%
9Ghosal and Van der Vaart (2017) Fundamentals of nonparametric Bayesian inference0.7547543%
10Hahn (1998) On the role of the propensity score in efficient semiparametric estimation of average treatment effects0.7373367%

Showing the top 10 of 50 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
1Bayesian Double Machine Learning for Causal Inference0.51121
2Robust Semiparametric Inference for Bayesian Additive Regression Trees0.51122
3Semiparametric Bayesian Inference for a Conditional Moment Equality Model0.40511
4Debiased Bayesian Inference for High-dimensional Regression Models0.40511