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Difference-in-Differences with Staggered Treatment Timing

Author

Listed:
  • Maurice Bailey
  • John Kendall

Abstract

Staggered treatment timing poses challenges to identify the treatment effect because the post-period dummy is not defined for control observations. Usually, researcher exploit variation in treatment timing and employ the two-way fixed effects model; differences in when units received treatment contribute to identification. Given that difference-in-differences analysis with staggered treatment timing are likely to be biased in the presence of treatment effect heterogeneity, we propose a methodology to correct for the bias induced by the staggered nature of policy adoption.

Suggested Citation

  • Maurice Bailey & John Kendall, 2021. "Difference-in-Differences with Staggered Treatment Timing," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 64(3), pages 69-102.
  • Handle: RePEc:eei:journl:v:64:y:2021:i:3:p:69-102
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    Citations

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    Cited by:

    1. Marcus Roller, Daniel Steinberg, 2023. "Differences-in-Differences with multiple Treatments under Control," Diskussionsschriften credresearchpaper41, Universitaet Bern, Departement Volkswirtschaft - CRED.

    More about this item

    Keywords

    Difference-in-differences; variation in treatment timing; dynamic treatment effects.;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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