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Sensitivity Analysis for Treatment Effects in Difference-in-Differences Models using Riesz Representation

Philipp Bach, Sven Klaassen, Jannis Kueck, Mara Mattes, Martin Spindler

arXiv 10 Oct 2025 · Econometrics

arXiv:2510.09064 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Difference-in-differences (DiD) is one of the most popular approaches for empirical research in economics, political science, and beyond. Identification in these models is based on the conditional parallel trends assumption: In the absence of treatment, the average outcome of the treated and untreated group are assumed to evolve in parallel over time, conditional on pre-treatment covariates. We introduce a novel approach to sensitivity analysis for DiD models that assesses the robustness of DiD estimates to violations of this assumption due to unobservable confounders, allowing researchers to transparently assess and communicate the credibility of their causal estimation results. Our method focuses on estimation by Double Machine Learning and extends previous work on sensitivity analysis based on Riesz Representation in cross-sectional settings. We establish asymptotic bounds for point estimates and confidence intervals in the canonical $2\times2$ setting and group-time causal parameters in settings with staggered treatment adoption. Our approach makes it possible to relate the formulation of parallel trends violation to empirical evidence from (1) pre-testing, (2) covariate benchmarking and (3) standard reporting statistics and visualizations. We provide extensive simulation experiments demonstrating the validity of our sensitivity approach and diagnostics and apply our approach to two empirical applications.

Citation extraction

52
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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
1Brantly Callaway and Pedro HC Sant’Anna (2021) Difference-in-differences with multiple time periods1.000134100%
2Ashesh Rambachan and Jonathan Roth (2023) A more credible approach to parallel trends1.000124100%
3Carlos Cinelli and Chad Hazlett (2020) Making sense of sensitivity: Extending omitted variable bias1.000105100%
4Victor Chernozhukov, Denis Chetverikov, Mert Demirer, Esther Duflo,… (2018) Double/debiased machine learning for treatment and structural parameters1.00063100%
5Robert J LaLonde (1986) Evaluating the econometric evaluations of training programs with experimental data1.00063100%
6Jeffrey A. Smith and Petra E. Todd (2005) Does matching overcome lalonde's critique of nonexperimental estimators?0.95917488%
7Pedro HC Sant’Anna and Jun Zhao (2020) Doubly robust difference-in-differences estimators0.94626685%
8Victor Chernozhukov, Carlos Cinelli, Whitney Newey, Amit Sharma, and… (2024) Long story short: Omitted variable bias in causal machine learning, 20240.94136683%
9Mirko Draca, Stephen Machin, and John Van Reenen (2011) Minimum wages and firm profitability0.84315460%
10Neng-Chieh Chang (2020) Double/debiased machine learning for difference-in-differences models0.84333100%

Showing the top 10 of 52 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 Robustness Values for Modern Causal Panel Estimators via Riesz Representations0.81142
2Automatic debiased machine learning and sensitivity analysis for sample selection models0.40511
3A Joint Analysis of Sensitivity to Anticipation and Parallel Trends Violations0.40511