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The Estimation of Causal Effects by Difference-in-Difference Methods

  • Michael Lechner


This survey gives a brief overview of the literature on the difference-in-difference (DiD) estimation strategy and discusses major issues using a treatment effect perspective. In this sense, this survey gives a somewhat different view on DiD than the standard textbook discussion of the difference-in-difference model, but it will also not be as complete as the latter. This survey contains also a couple of extensions to the literature, for example, a discussion of and suggestions for non-linear DiD as well as DiD based on propensity-score type matching methods.

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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2010 with number 2010-28.

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Length: 57 pages
Date of creation: Sep 2010
Date of revision: Oct 2011
Handle: RePEc:usg:dp2010:2010-28
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