Differences in Differences (using Stata)
Differences-in-Differences
(v. 3.3)
Oscar Torres-Reyna
otorres@princeton.edu
August 2015
Intro
Differences-in-Differences regression (DID) is used to
asses the causal effect of an event by comparing the
set of units where the event happened (treatment
group) in relation to units where the event did not
happen (control group).
The logic behind DID is that if the event never
happens, the differences between treatment and
control groups should stay the same overtime, see
graph next slide.*
*See:
OTR
2
Source:
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? = ?0 + ?1 ???? + ?2 ??????? + ?3 ???? ? ??????? + ?
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Source:
4
Intro
This document shows how to perform
difference-in-differences regression in the
following two situations:
? Event happened at the same time for all
treated groups.
? Event is staggered across groups.
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