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Review on Difference in Differences

Author

Listed:
  • Myoung-jae Lee

    (Korea University)

  • Yasuyuki Sawada

    (Asian Development Bank)

Abstract

Difference in differences (DD) is one of the most popular approaches in economics and other disciplines of social sciences. This paper provides a review on the basics and recent advances in DD from a personal perspective. Details on DD identification and estimation using panel data and repeated cross-sections are provided for various DD cases such as constant/time-varying effect or constant/time-varying treatment timing. Following these basics on DD, topics such as ‘DD in reverse’, fuzzy DD, synthetic control, and triple and generalized differences are examined. Many empirical examples in various areas of economics are provided for illustration.

Suggested Citation

  • Myoung-jae Lee & Yasuyuki Sawada, 2020. "Review on Difference in Differences," Korean Economic Review, Korean Economic Association, vol. 36, pages 135-173.
    • Handle: RePEc:kea:keappr:ker-20200101-36-1-05
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    References listed on IDEAS

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    More about this item

    Keywords

    Difference in Differences (DD); DD in Reverse; Fuzzy DD; Synthetic Control; Triple DD; Generalized DD;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H00 - Public Economics - - General - - - General
    • I00 - Health, Education, and Welfare - - General - - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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