Sharing a very interesting new paper on DiD methods when used with heterogeneous treatment effects: Andrew Goodman-Bacon, 2018. Differences-in-Differences with Variation in Treatment Timing, Working Paper. The paper shows how (and when) a DiD estimator can be decomposed as a weighted average of 4 simple and intuitive "2x2" average causal effects. Some of these effects may … Continue reading Testing the validity of the Diff-in-Diff design when treatment timing varies (done rigorously)
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