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A Simple Approach to Staggered Difference-in-Differences in the Presence of Spillovers

Mario Fiorini, Wooyong Lee () and Gregor Pfeifer
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Wooyong Lee: University of Sydney

No 16868, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We establish identifying assumptions and estimation procedures for the ATT in a Difference-in-Differences setting with staggered treatment adoption in the presence of spillovers. We show that the ATT can be estimated by a simple TWFE method that extends the approach of Wooldridge [2022]'s fully interacted regression model. We broaden our framework to the non-linear case of count data, offering estimation of the ATT by a simple TWFE Poisson model, and we revisit a corresponding application from the crime literature. Monte Carlo simulations show that our estimator performs competitively.

Keywords: Difference-in-Differences; staggered treatment adoption; spillovers; (non-)linear models (search for similar items in EconPapers)
Pages: 40 pages
Date: 2024-03
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