2019
DOI: 10.1108/rausp-05-2019-0112
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Impact evaluation using Difference-in-Differences

Abstract: Purpose This paper aims to present the Difference-in-Differences (DiD) method in an accessible language to a broad research audience from a variety of management-related fields. Design/methodology/approach The paper describes the DiD method, starting with an intuitive explanation, goes through the main assumptions and the regression specification and covers the use of several robustness methods. Recurrent examples from the literature are used to illustrate the different concepts. Findings By providing an o… Show more

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Cited by 133 publications
(67 citation statements)
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References 38 publications
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“…For each station, the idea is first to compute the time trends in turnstile entries and coronavirus incidence, and then assesses whether there is a relation between the two trends across different Jeffrey E. Harris 4/9/2020 subway stations (Fredriksson and Oliviera 2019). Unfortunately, there is a serious problem with this extraordinarily popular method of doing policy analysis (Bertrand, Duflo, and Mullainathan 2004).…”
Section: Diversity Of Covid-19 Incidence By New York City Zip Codementioning
confidence: 99%
“…For each station, the idea is first to compute the time trends in turnstile entries and coronavirus incidence, and then assesses whether there is a relation between the two trends across different Jeffrey E. Harris 4/9/2020 subway stations (Fredriksson and Oliviera 2019). Unfortunately, there is a serious problem with this extraordinarily popular method of doing policy analysis (Bertrand, Duflo, and Mullainathan 2004).…”
Section: Diversity Of Covid-19 Incidence By New York City Zip Codementioning
confidence: 99%
“…The DID model determined the effect of a specific treatment (e.g., large-scale program implementation) by comparing the alteration in outcomes over time between a population which joined the program (i.e., the treatment group) and a population that did not (i.e., the control group) [102]. DID uses longitudinal data of control and treatment groups to gain a suitable counterfactual to analyse a causal effect [103]. The study used Eq (2) to calculate the DID-based model.…”
Section: Discussionmentioning
confidence: 99%
“…A naive comparison of post implementation search trends across states under different price-gouging regulation would mistake variation driven by unobserved preexisting differences as variation attributable to differences in price-gouging regulation (Fredriksson and de Oliveira 2019 ; Lechner 2011 ). For instance, if average households have more members in states with preexisting regulation which causes a larger proportion of searches for hand sanitizer, the naive approach would end up attributing this increase in relative search volumes to the difference in regulation.…”
Section: Methodsmentioning
confidence: 99%