• Corpus ID: 234339161

Difference-in-Differences Estimation with Spatial Spillovers

@inproceedings{Butts2021DifferenceinDifferencesEW,
  title={Difference-in-Differences Estimation with Spatial Spillovers},
  author={Kyle Butts},
  year={2021}
}
Empirical work often uses treatment assigned following geographic boundaries. When the effects of treatment cross over borders, classical difference-in-differences estimation produces biased estimates for the average treatment effect. In this paper, I introduce a potential outcomes framework to model spillover effects and decompose the estimate’s bias in two parts: (1) the control group no longer identifies the counterfactual trend because their outcomes are affected by treatment and (2… 

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