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A Simple Approach to Staggered Difference-in-Differences in the Presence of Spillovers

Author

Listed:
  • Fiorini, Mario

    (University of Sydney)

  • Lee, Wooyong

    (University of Sydney)

  • Pfeifer, Gregor

    (University of Sydney)

Abstract

We establish identifying assumptions and estimation procedures for the ATT in a Difference-in-Differences setting with staggered treatment adoption in the presence of spillovers. We show that the ATT can be estimated by a simple TWFE method that extends the approach of Wooldridge [2022]'s fully interacted regression model. We broaden our framework to the non-linear case of count data, offering estimation of the ATT by a simple TWFE Poisson model, and we revisit a corresponding application from the crime literature. Monte Carlo simulations show that our estimator performs competitively.

Suggested Citation

  • Fiorini, Mario & Lee, Wooyong & Pfeifer, Gregor, 2024. "A Simple Approach to Staggered Difference-in-Differences in the Presence of Spillovers," IZA Discussion Papers 16868, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16868
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    References listed on IDEAS

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    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. Marco Gonzalez-Navarro, 2013. "Deterrence and Geographical Externalities in Auto Theft," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 92-110, October.
    3. Clarke, Damian, 2017. "Estimating Difference-in-Differences in the Presence of Spillovers," MPRA Paper 81604, University Library of Munich, Germany.
    4. Martin Huber & Andreas Steinmayr, 2021. "A Framework for Separating Individual-Level Treatment Effects From Spillover Effects," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 39(2), pages 422-436, March.
    5. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    6. Kyle Butts, 2021. "Difference-in-Differences Estimation with Spatial Spillovers," Papers 2105.03737, arXiv.org, revised Jun 2023.
    7. Berg, Tobias & Reisinger, Markus & Streitz, Daniel, 2021. "Spillover effects in empirical corporate finance," Journal of Financial Economics, Elsevier, vol. 142(3), pages 1109-1127.
    8. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    9. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
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    Cited by:

    1. Andrea Ciaccio & Francesco Moscone & Elisa Tosetti, 2025. "Environmental Policy and Firm Performance in Europe: A Difference-in-Differences Approach with Spillovers," Papers 2512.15377, arXiv.org.
    2. Jacob Goss & Daniel Mangrum, 2026. "Sports Betting Across Borders: Spatial Spillovers, Credit Distress, and Fiscal Externalities," Staff Reports 1184, Federal Reserve Bank of New York.
    3. Cruz, Iván López & Torrens, Gustavo, 2026. "A two-wave death story: fentanyl overdoses in the US, bullets in Mexico," Journal of Development Economics, Elsevier, vol. 178(C).
    4. Silvia De Nicol`o & Beatrice Biondi & Mario Mazzocchi, 2026. "Three's a crowd: Identification challenges in the triple difference model with spillover effects," Papers 2601.15764, arXiv.org.
    5. Jorge A. Arroyo, 2025. "Big Wins, Small Net Gains: Direct and Spillover Effects of First Industry Entries in Puerto Rico," Papers 2511.19469, arXiv.org, revised Nov 2025.

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