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Choosing A Headline Estimand from Matching, DID, and Hybrid Designs: A Minimax-Regret Approach

Author

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  • Yechan Park
  • Yuya Sasaki

Abstract

Researchers using panel data to estimate causal effects routinely choose among three approaches to using past outcomes: difference-in-differences (DID), conditioning on lagged outcomes (matching, M), and a hybrid that does both (DIDM). The corresponding identifying assumptions are non-nested, leaving little guidance on which to report. We give conditions under which the corresponding estimands are ordered, with DIDM bracketed between matching and DID. This makes DIDM the minimax-regret choice among the three under a broad class of loss functions. We recommend reporting DIDM as the headline estimate, with matching and DID as bounds. We illustrate in applications.

Suggested Citation

  • Yechan Park & Yuya Sasaki, 2026. "Choosing A Headline Estimand from Matching, DID, and Hybrid Designs: A Minimax-Regret Approach," Papers 2606.20435, arXiv.org.
    • Handle: RePEc:arx:papers:2606.20435
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