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A Simple Approach to Staggered Difference-in-Differences in the Presence of Spillovers

Author

Listed:
  • Mario Fiorini
  • Wooyong Lee
  • Gregor Pfeifer
  • Gregor-Gabriel Pfeifer

Abstract

We establish identifying assumptions and estimation procedures for the ATT in a Difference-in-Differences setting with staggered treatment adoption in the presence of spillovers. We show that the ATT can be estimated by a simple TWFE method that extends the approach of Wooldridge [2022]’s fully interacted regression model. We broaden our framework to the non-linear case of count data, offering estimation of the ATT by a simple TWFE Poisson model, and we revisit a corresponding application from the crime literature. Monte Carlo simulations show that our estimator performs competitively.

Suggested Citation

  • Mario Fiorini & Wooyong Lee & Gregor Pfeifer & Gregor-Gabriel Pfeifer, 2024. "A Simple Approach to Staggered Difference-in-Differences in the Presence of Spillovers," CESifo Working Paper Series 11011, CESifo.
    • Handle: RePEc:ces:ceswps:_11011
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    References listed on IDEAS

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    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
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    5. Clarke, Damian, 2017. "Estimating Difference-in-Differences in the Presence of Spillovers," MPRA Paper 81604, University Library of Munich, Germany.
    6. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    7. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    8. Roth, Jonathan & Sant’Anna, Pedro H.C. & Bilinski, Alyssa & Poe, John, 2023. "What’s trending in difference-in-differences? A synthesis of the recent econometrics literature," Journal of Econometrics, Elsevier, vol. 235(2), pages 2218-2244.
    9. Kyle Butts, 2021. "Difference-in-Differences Estimation with Spatial Spillovers," Papers 2105.03737, arXiv.org, revised Jun 2023.
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    Keywords

    difference-in-differences; staggered treatment adoption; spillovers; (non-)linear models;
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