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Better Understanding Triple Differences Estimators

Marcelo Ortiz-Villavicencio, Pedro H. C. Sant'Anna

arXiv 15 May 2025 · Econometrics

arXiv:2505.09942 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Triple Differences (DDD) designs are widely used in empirical work to relax parallel trends assumptions in Difference-in-Differences (DiD) settings. This paper highlights that common DDD implementations -- such as taking the difference between two DiDs or applying three-way fixed effects regressions -- are generally invalid when identification requires conditioning on covariates. In staggered adoption settings, the common DiD practice of pooling all not-yet-treated units as a comparison group can introduce additional bias, even when covariates are not required for identification. These insights challenge conventional empirical strategies and underscore the need for estimators tailored specifically to DDD structures. We develop regression adjustment, inverse probability weighting, and doubly robust estimators that remain valid under covariate-adjusted DDD parallel trends. For staggered designs, we demonstrate how to effectively utilize multiple comparison groups to obtain more informative inferences. Simulations and three empirical applications highlight bias reductions and precision gains relative to standard approaches. A companion R package is available.

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
1Olden and Men (2022) The triple difference estimator1.00084100%
2Strezhnev (2023) Decomposing Triple-Differences Regression under Staggered Adoption1.00053100%
3Callaway and Sant’Anna (2021) Difference-in-differences with multiple time periods0.98522795%
4Sant'Anna and Zhao (2020) Doubly Robust Difference-in-Differences Estimators0.90912575%
5Hansen and Wingender (2023) National and Global Impacts of Genetically Modified Crops0.874172100%
6Cui, Zhang and Zheng (2018) Carbon Pricing Induces Innovation: Evidence from China's Regional Carbon Market Pilots0.874152100%
7Cai (2016) The Impact of Insurance Provision on Household Production and Financial Decisions0.874142100%
8Abadie (2005) Semiparametric Difference-in-Difference Estimators0.73732100%
9Baker, Callaway, Cunningham, Goodman-Bacon and Sant'Anna (2025) Difference-in-Differences Designs: A Practitioner's Guide self0.73732100%
10Borusyak, Jaravel and Spiess (2024) Revisiting Event-Study Designs: Robust and Efficient Estimation0.73732100%

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
1Three’s a crowd: Identification challenges in the triple difference model with spillover effects0.956166
2Stacked Triple Differences0.92854
3Triple Difference Designs with Heterogeneous Treatment Effects0.64441
4Difference-in-Differences Designs: A Practitioner's Guide0.58531
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