Difference-in-Differences Estimators of Intertemporal Treatment Effects

Clément de Chaisemartin and Xavier D'Haultfoeuille

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Abstract: We study treatment-effect estimation using panel data. The treatment may be non-binary, non-absorbing, and the outcome may be affected by treatment lags. We make a paralleltrends assumption, and propose event-study estimators of the effect of being exposed to a weakly higher treatment dose for ℓ periods. We also propose normalized estimators, that estimate a weighted average of the effects of the current treatment and its lags. We also analyze commonly-used two-way-fixed-effects regressions. Unlike our estimators, they can be biased in the presence of heterogeneous treatment effects. A local-projection version of those regressions is biased even with homogeneous effects.

Keywords: Differences-in-differences; Dynamic treatment effects; Heterogeneous treatment effects; Event-study graph; Parallel trends; Panel data; Cost-benefit analysis; Local projection (search for similar items in EconPapers)
Date: 2024-12-11
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03873903v2
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Citations: View citations in EconPapers (25)

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Related works:
Working Paper: Difference-in-Differences Estimators of Intertemporal Treatment Effects (2024)
Working Paper: Difference-in-Differences Estimators of Intertemporal Treatment Effects (2024)
Working Paper: Difference-in-Differences Estimators of Intertemporal Treatment Effects (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03873903

DOI: 10.48550/arXiv.2007.04267

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