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Difference-in-Differences Estimators for Treatments Continuously Distributed at Every Period

Author

Listed:
  • Cl'ement de Chaisemartin
  • Xavier D'Haultfoeuille
  • F'elix Pasquier
  • Doulo Sow
  • Gonzalo Vazquez-Bare

Abstract

We propose difference-in-differences estimators in designs where the treatment is continuously distributed at every period, as is often the case when one studies the effects of taxes, tariffs, or prices. We assume that between consecutive periods, the treatment of some units, the switchers, changes, while the treatment of other units remains constant. We show that under a placebo-testable parallel-trends assumption, averages of the slopes of switchers' potential outcomes can be nonparametrically estimated. We generalize our estimators to the instrumental-variable case. We use our estimators to estimate the price-elasticity of gasoline consumption.

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  • Cl'ement de Chaisemartin & Xavier D'Haultfoeuille & F'elix Pasquier & Doulo Sow & Gonzalo Vazquez-Bare, 2022. "Difference-in-Differences Estimators for Treatments Continuously Distributed at Every Period," Papers 2201.06898, arXiv.org, revised Jul 2024.
    • Handle: RePEc:arx:papers:2201.06898
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    References listed on IDEAS

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    Cited by:

    1. Cl'ement de Chaisemartin & Xavier D'Haultf{oe}uille, 2020. "Difference-in-Differences Estimators of Intertemporal Treatment Effects," Papers 2007.04267, arXiv.org, revised Dec 2024.
    2. Naimi Johansson & Mikael Svensson, 2022. "Regional variation in prescription drug spending: Evidence from regional migrants in Sweden," Health Economics, John Wiley & Sons, Ltd., vol. 31(9), pages 1862-1877, September.
    3. Gerard J. van den Berg & Stephanie von Hinke & Nicolai Vitt, 2023. "Early life exposure to measles and later-life outcomes: Evidence from the introduction of a vaccine," Papers 2301.10558, arXiv.org.

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