Discussion on “Instrumented difference‐in‐differences” by Ting Ye, Ashkan Ertefaie, James Flory, Sean Hennessy & Dylan S. Small

Hyunseung Kang

Biometrics, 2023, vol. 79, issue 2, 592-596

Abstract: We reinterpret the instrumented difference‐in‐differences (iDID) under a linear instrumental variables (IV) model. Under the linear IV model, we show why iDID is a clear improvement over two existing methods, difference‐in‐differences (DID) and a cross‐sectional, IV analysis. We also re‐express some of the assumptions of iDID using familiar, regression‐based identification assumptions. We conclude with a method inspired by the linear IV model that can potentially remedy the weak identification problem in iDID.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bla:biomet:v:79:y:2023:i:2:p:592-596

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