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Seminar

Differences-in-differences for the 2020s

Econometrics and Applied Micro Seminar

Add to calendar 2025-01-10 09:15 2025-01-10 10:45 Europe/Rome Differences-in-differences for the 2020s Conference Room Villa La Fonte YYYY-MM-DD
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When

10 January 2025

9:15 - 10:45 CET

Where

Conference Room

Villa La Fonte

In this seminar, Steve Pischke from LSE, will present the paper: 'Differences-in-differences for the 2020s'.

Differences-in-differences are a powerful and widely applicable tool to uncover causal effects of interventions that happened for some groups and not others. Its recent incarnation as event studies offers rich dynamic effects and the potential to test the underlying parallel trends assumption. This survey scrutinises recent advances in the methodological literature, which helps us understand and refine these methods. We conclude that the focus for the empirical analyst should be mundane aspects of model specification, careful attention to the validity of the parallel trends assumption, and some healthy scepticism about DD standard errors.

We find that warnings about the perils of heterogeneity and cautions about testing for pre-trends have little empirical bite.

Co-authors: Alberto Abadie, Joshua Angrist, Brigham Frandsen, and Jörn-Steffen Pischke

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