Inference with difference-in-differences and other panel data

722Citations
Citations of this article
822Readers
Mendeley users who have this article in their library.
Get full text

Abstract

We examine inference in panel data when the number of groups is small, as is typically the case for difference-in-differences estimation and when some variables are fixed within groups. In this case, standard asymptotics based on the number of groups going to infinity provide a poor approximation to the finite sample distribution. We show that in some cases the t-statistic is distributed as t and propose simple two-step estimators for these cases. We apply our analysis to two well-known papers. We confirm our theoretical analysis with Monte Carlo simulations. © 2007 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Cite

CITATION STYLE

APA

Donald, S. G., & Lang, K. (2007). Inference with difference-in-differences and other panel data. Review of Economics and Statistics, 89(2), 221–233. https://doi.org/10.1162/rest.89.2.221

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free