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Journal of Financial Economics· 2022Q1

How much should we trust staggered difference-in-differences estimates?

Andrew C. Baker, David F. Larcker, Charles C. Y. Wang

Short summary

Staggered difference-in-differences (DiD) regression estimators, widely used for policy impact analysis, are often biased, leading to incorrect conclusions. This paper explains these biases and reviews three alternative estimators that address them.

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Field: Statistics and Probability

Statistics and ProbabilityMathematics