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The triple difference estimator
[Semiparametric difference-in-differences estimators]

Author

Listed:
  • Andreas Olden
  • Jarle Møen

Abstract

SummaryTriple difference has become a widely used estimator in empirical work. A close reading of articles in top economics journals reveals that the use of the estimator to a large extent rests on intuition. The identifying assumptions are neither formally derived nor generally agreed on. We give a complete presentation of the triple difference estimator, and show that even though the estimator can be computed as the difference between two difference-in-differences estimators, it does not require two parallel trend assumptions to have a causal interpretation. The reason is that the difference between two biased difference-in-differences estimators will be unbiased as long as the bias is the same in both estimators. This requires only one parallel trend assumption to hold.

Suggested Citation

  • Andreas Olden & Jarle Møen, 2022. "The triple difference estimator [Semiparametric difference-in-differences estimators]," The Econometrics Journal, Royal Economic Society, vol. 25(3), pages 531-553.
    • Handle: RePEc:oup:emjrnl:v:25:y:2022:i:3:p:531-553.
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    File URL: http://hdl.handle.net/10.1093/ectj/utac010
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    More about this item

    Keywords

    DD; DDD; DID; DiDiD; difference-in-difference-in-differences; difference-in-differences; parallel trend assumption; triple difference;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - 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

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