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A difference-in-differences estimator by covariate balancing propensity score

Junjie Li, Yukitoshi Matsushita

arXiv 4 Aug 2025 · Econometrics

arXiv:2508.02097 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This article develops a covariate balancing approach for the estimation of treatment effects on the treated (ATT) in a difference-in-differences (DID) research design when panel data are available. We show that the proposed covariate balancing propensity score (CBPS) DID estimator possesses several desirable properties: (i) local efficiency, (ii) double robustness in terms of consistency, (iii) double robustness in terms of inference, and (iv) faster convergence to the ATT compared to the augmented inverse probability weighting (AIPW) DID estimators when both working models are locally misspecified. These latter two characteristics set the CBPS DID estimator apart from the AIPW DID estimator theoretically. Simulation studies and an empirical study demonstrate the desirable finite sample performance of the proposed estimator.

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, Pedro HC, Zhao, Jun (2020) Doubly robust difference-in-differences estimators1.00064100%
2Imai, Kosuke, Ratkovic, Marc (2014) Covariate balancing propensity score0.84333100%
3Kang, Joseph DY, Schafer, Joseph L (2007) Demystifying double robustness: A comparison of alternative strategies for estimating a population mean from incomplete data0.84333100%
4Fan, Jianqing, Imai, Kosuke, Lee, Inbeom, Liu, Han, Ning, Yang, Yang… (2022) Optimal covariate balancing conditions in propensity score estimation0.73732100%
5Heckman, James J, Ichimura, Hidehiko, Todd, Petra E (1997) Matching as an econometric evaluation estimator: Evidence from evaluating a job training programme0.51121100%
6Smith, Jeffrey A, Todd, Petra E (2005) Does matching overcome LaLonde's critique of nonexperimental estimators?0.51121100%
*unmatched citation key *0.40511100%
8Abadie, Alberto (2005) Semiparametric difference-in-differences estimators0.40511100%
9Chernozhukov, Victor, Chetverikov, Denis, Demirer, Mert, Duflo, Esth… (2017) Double/debiased/neyman machine learning of treatment effects0.40511100%
10Dehejia, Rajeev H, Wahba, Sadek (1999) Causal effects in nonexperimental studies: Reevaluating the evaluation of training programs0.40511100%

Showing the top 10 of 11 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Semiparametric Difference-in-Differences Estimation With Missing Not at Random Data: A Shadow Variable Approach0.84333