Difference-in-Differences Estimators of Intertemporal Treatment Effects / Clément de Chaisemartin, Xavier D'Haultfoeuille.

Format:

Book

Author/Creator:

de Chaisemartin, Clément.

Contributor:

National Bureau of Economic Research.

D'Haultfoeuille, Xavier.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29873.

NBER working paper series no. w29873

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

We study treatment-effect estimation using panel data. The treatment may be nonbinary, non-absorbing, and the outcome may be affected by the treatment lags. We make parallel-trends assumptions, but do not restrict treatment effect heterogeneity, unlike commonly-used two-way-fixed-effects regressions. We propose reduced-form event-study estimators of the effect of being exposed to a weakly higher treatment dose for ℓ periods. We also propose normalized event-study estimators, that estimate a weighted average of the effects of the current treatment and its lags. Finally, we show that the reduced-form estimators can be combined into an economically interpretable cost-benefit ratio.

Notes:

Print version record

March 2022.