What’s trending in difference-in-differences? A synthesis of the recent econometrics literature

@article{Roth2022WhatsTI,
  title={What’s trending in difference-in-differences? A synthesis of the recent econometrics literature},
  author={Jonathan Roth and Pedro H. C. Sant’Anna and Alyssa M. Bilinski and John Poe},
  journal={Journal of Econometrics},
  year={2022}
}

Tables from this paper

Difference-in-Differences for Policy Evaluation

Difference-in-differences is one of the most used identification strategies in empirical work in economics. This chapter reviews a number of important, recent developments related to

Difference-in-Differences with Compositional Changes

This paper studies difference-in-differences (DiD) setups with repeated cross-sectional data and potential compositional changes across time periods. We begin our analysis by deriving the efficient

Selection and Parallel Trends

One of the perceived advantages of difference-in-differences (DiD) methods is that they do not explicitly restrict how units select into treatment. However, when justifying DiD, researchers often argue

Causality in Econometrics: Choice vs Chance

This essay describes the evolution and recent convergence of two methodological approaches to causal inference. The first one, in statistics, started with the analysis and design of randomized

Misclassification in Difference-in-Differences Models

. The difference-in-differences (DID) design is one of the most popular methods in empirical economics research. However, there is almost no work examining what the DID method identifies in the presence

Structural Nested Mean Models Under Parallel Trends Assumptions

In this paper, we generalize methods in the Difference in Differences (DiD) literature by showing that both additive and multiplicative standard and coarse Structural Nested Mean Models (Robins, 1994,

Two-Way Fixed Effects and Differences-in-Differences with Heterogeneous Treatment Effects: A Survey

Linear regressions with period and group fixed effects are widely used to estimate policies' effects: 26 of the 100 most cited papers published by the American Economic Review from 2015 to 2019

Doubly Robust Difference-in-Differences with General Treatment Patterns

We develop a difference-in-differences method in a general setting in which the treatment variable of interest may be non-binary and its value may change in each time period. It is generally difficult to

Investment expectations by vulnerable European firms A difference-in-difference approach

The effect of the COVID shock on European economies has been severe and also unequal, with some firms being affected much more strongly than others. To improve the effectiveness of policy

Structural mean models for instrumented difference-in-differences

In the standard difference-in-differences research design, the parallel trends assumption may be violated when the relationship between the exposure trend and the outcome trend is confounded by
...

How Much Should We Trust Staggered Difference-In-Differences Estimates?

Difference-in-differences analysis with staggered treatment timing is frequently used to assess the impact of policy changes on corporate outcomes in academic research. However, recent advances in

How Much Should We Trust Differences-in-Differences Estimates?

Most Difference-in-Difference (DD) papers rely on many years of data and focus on serially correlated outcomes. Yet almost all these papers ignore the bias in the estimated standard errors that

The Role of Parallel Trends in Event Study Settings: An Application to Environmental Economics

A “robustness” versus “efficiency” trade-off in terms of the strength of the underlying PTA is documented and it is argued that practitioners should be explicit about these trade-offs whenever using DID procedures.

Pretest with Caution: Event-Study Estimates after Testing for Parallel Trends

  • J. Roth
  • Economics
    American Economic Review: Insights
  • 2022
This paper discusses two important limitations of the common practice of testing for preexisting differences in trends (“ pre-trends”) when using difference-in-differences and related methods. First,

DIFFERENCE-IN-DIFFERENCES ESTIMATION UNDER NON-PARALLEL TRENDS

Classic difference-in-differences estimation relies on the validity of the “parallel trends assumption” (PTA), which ensures that the evolution of the variable of interest in the control group can be

Cluster-Sample Methods in Applied Econometrics

Inference methods that recognize the clustering of individual observations have been available for more than 25 years. Brent Moulton (1990) caught the attention of economists when he demonstrated the

Semiparametric Difference-in-Differences Estimators

The difference-in-differences (DID) estimator is one of the most popular tools for applied research in economics to evaluate the effects of public interventions and other treatments of interest on

An Honest Approach to Parallel Trends

Standard approaches for causal inference in difference-in-differences and event-study designs are valid only under the assumption of parallel trends. Researchers are typically unsure whether the

Synthetic Difference-in-Differences

We present a new estimator for causal effects with panel data that builds on insights behind the widely used difference-in-differences and synthetic control methods. Relative to these methods we
...