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Cohort-Anchored Robust Inference for Event-Study with Staggered Adoption

Ziyi Liu

arXiv 1 Sep 2025 · Econometrics

arXiv:2509.01829 · PDF · Extracted main text

Abstract

This paper proposes a cohort-anchored framework for robust inference in event studies with staggered adoption, building on Rambachan and Roth (2023). Robust inference based on event-study coefficients aggregated across cohorts can be misleading due to the dynamic composition of treated cohorts, especially when pre-trends differ across cohorts. My approach avoids this problem by operating at the cohort-period level. To address the additional challenge posed by time-varying control groups in modern DiD estimators, I introduce the concept of block bias: the parallel-trends violation for a cohort relative to its fixed initial control group. I show that the biases of these estimators can be decomposed invertibly into block biases. Because block biases maintain a consistent comparison across pre- and post-treatment periods, researchers can impose transparent restrictions on them to conduct robust inference. In simulations and a reanalysis of minimum-wage effects on teen employment, my framework yields better-centered (and sometimes narrower) confidence sets than the aggregated approach when pre-trends vary across cohorts. The framework is most useful in settings with multiple cohorts, sufficient within-cohort precision, and substantial cross-cohort heterogeneity.

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
1Rambachan, A. and J. Roth (2023) A More Credible Approach to Parallel Trends1.000284100%
2Callaway, B. and P. H. Sant’Anna (2021) Difference-in-Differences with Multiple Time Periods0.95014686%
3Borusyak, K., X. Jaravel, and J. Spiess (2024) Revisiting event-study designs: robust and efficient estimation0.9285380%
4Sun, L. and S. Abraham (2021) Estimating Dynamic Treatment Effects in Event Studies with Heterogeneous Treatment Effects0.87452100%
5Liu, L., Y. Wang, and Y. Xu (2024) A practical guide to counterfactual estimators for causal inference with time-series cross-sectional data0.8435360%
6Aguilar-Loyo, J (2025) A comparative analysis of two-way fixed effects estimators in staggered treatment designs0.81142100%
7Andrews, I., J. Roth, and A. Pakes (2023) Inference for linear conditional moment inequalities0.73732100%
8Roth, J (2024) Interpreting Event-Studies from Recent Difference-in-Differences Methods0.64422100%
9Arkhangelsky, D. and A. Samkov (2024) Sequential synthetic difference in differences0.64422100%
10De Chaisemartin, C. and X. d'Haultfoeuille (2024) Difference-in-Differences Estimators of Intertemporal Treatment Effects0.64422100%

Showing the top 10 of 19 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
1Interpreting Event-Studies from Recent Difference-in-Differences Methods0.64441