2023/02/06 by Luis Ignacio Ortega Álvarez, Bruno Ferman, Alvarez, Luis +1
Economics, Econometrics and Finance · Mathematics · #Advanced Causal Inference Techniques #Econometrics (econ.EM) #FOS: Economics and business #Health Systems, Economic Evaluations, Quality of Life #Statistical Methods and Bayesian Inference
paper · pdf · doi:10.48550/arxiv.2302.03131
openalex publication_date 2023/02/06 · openalex created_date 2023/02/10 · openalex updated_date 2026/07/28
In settings with few treated units, Difference-in-Differences (DID) estimators are not consistent, and are not generally asymptotically normal. This poses relevant challenges for inference. While there are inference methods that are valid in these settings, some of these alternatives are not readily available when there is variation in treatment timing and heterogeneous treatment effects; or for deriving uniform confidence bands for event-study plots. We present alternatives in settings with few treated units that are valid with variation in treatment timing and/or that allow for uniform confidence bands.