This is the generalized Difference-in-Differences
Questions tagged [generalized-did]
9 questions
3
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What might be the identification challenges with a generalized DiD model where the treatment variable experiences reversals (switches on/off)?
I have a setting where my treatment variable experiences reversals across the panel units in a staggered adoption setting. To estimate the average treatment effects on the treated in a setting that experiences both treatment reversals and staggered…
Ahmed Chaudhry
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3
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Is there any common way to do pre-trend analysis for generalized Difference in Difference?
The generalized difference-in-differences (DiD) estimator is DiD with multiple time periods and multiple groups. A very common example is when the impact of laws on firms happens at different times, in part because the laws are passed at different…
Louise
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3
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How to plot the graph or perform a formal test of parallel trends for generalized DiD?
A. Background:
Dasgupta, 2019, p. 2596-2597 create a baseline as below to study the impact of staggered design difference-in-differences (DiD):
The baseline identification:
$Y_{it}$ = $\alpha$ + $\beta$ $(Leniency Law)_{kt}$ + $\delta$$X_{ikt}$ +…
Louise
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2
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1 answer
Fixed effects in differences-in-differences
In a differences-in-differences it is quite typical to have
$y_{ist} = \lambda_t + \alpha_s + \beta_1D_{s,t} + \epsilon_{ist}$,
where $\lambda_t$ is a time fixed effect and $\alpha_s$ is a group fixed effect. $\beta_1$ is the coefficient of…
Daniel Pinto
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When we can ignore clustering?
I think it is a practical headache rising when doing empirical research. I am examining the impact of anticollusion laws on firms' asset growth as Dasgupsta, 2019 uses the genralized Difference-in-Differences for multiple groups and time…
Louise
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0
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1 answer
Perfect Multicollinearity in Difference in Differences
I have a set of cities for which approximately half received an intervention and half did not. The intervention was a drug treatment program. All the cities that received the intervention received it at the same time.
I would like to setup a DiD…
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Generalized DiD - Should I drop States which are treated before my sample data begins?
I am estimating the effect of a law change on certain policies for the US states. The time period for my dataset ranges from 1980-2017. My treatment variable is a binary variable that indicates the presence of law if it takes the value of 1.
Within…
Ahmed Chaudhry
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0
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Curiousity about the treatment groups terminating in generalized Difference-in-Difference?
In generalized DiD setting for staggered laws implementation, I am wondering if the treatment can be stopped in some lags rather than lasting the whole period.
The baseline identification:
$Y_{it}$ = $\alpha$ + $\beta$ $(Leniency Law)_{kt}$ +…
Louise
- 97
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- 16
0
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1 answer
How to explain the coefficient plotting as pre-trend stability testing for generalized Difference-in-Differences?
Proving the pre-trend parallel is hard in generalized DiD.
From this post, Thomas Bilach suggests me a very excellent way to do so which is called "coefficient plotting"
In short, it can be achieved by running this equation
$$y_{kt} = \alpha_k +…
Louise
- 97
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- 16