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Using Pre-Trends for Inference in Difference-in-Differences

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  • Cl'ement de Chaisemartin

Abstract

Difference-in-differences (DID) are sometimes estimated with many pre-treatment periods. In such settings, the observed pre-treatment outcome evolutions provide direct information about the magnitude of shocks that could also occur after treatment. This paper proposes a simple inference procedure that uses those pre-trends as the reference distribution for the post-treatment DID. The procedure is closely related to existing conformal inference procedures, but its DID-specific predictor leads to a distinct identifying restriction. Existing procedures assume parallel trends, while this paper's procedure does not require parallel trends.

Suggested Citation

  • Cl'ement de Chaisemartin, 2026. "Using Pre-Trends for Inference in Difference-in-Differences," Papers 2607.21312, arXiv.org.
  • Handle: RePEc:arx:papers:2607.21312
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    File URL: https://arxiv.org/pdf/2607.21312
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