Bacon decomposition for understanding differences-in-differences with variation in treatment timing

Austin Nichols (), Andrew Goodman-Bacon and Thomas Goldring
Additional contact information
Austin Nichols: Abt Associates
Andrew Goodman-Bacon: Vanderbilt University
Thomas Goldring: Georgia Policy Labs

2019 Stata Conference from Stata Users Group

Abstract: In applications of a difference-in-differences (DD) model, researchers often exploit natural experiments with variation in onset, comparing outcomes across groups of units that receive treatment starting at different times. Goodman-Bacon (2019) shows that this DD estimator is a weighted average of all possible two-group/two-period DD estimators in the data. The -bacon- command performs this decomposition and graphs all two-by-two DD estimates against their weight, which displays all identifying variation for the overall DD estimate. Given the widespread use of the two-way fixed effects DD model, -bacon- has broad applicability across domains and will help researchers understand how much of a given DD estimate comes from different sources of variation.

Date: 2019-08-02
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://fmwww.bc.edu/repec/scon2019/chicago19_Goodman-Bacon.pptx

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boc:scon19:46

Access Statistics for this paper

More papers in 2019 Stata Conference from Stata Users Group Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F Baum ().