Research Methods for Corporate, Securities, and Financial Law
How Much Should We Trust Differences-in-Differences Estimates?
Marianne Bertrand, Esther Duflo, and Sendhil Mullainathan
- Year
- 2004
- Venue
- Quarterly Journal of Economics
- Level
- Intermediate
Summary
Studies inference problems in difference-in-differences research using placebo laws and state-level panel data. The paper shows that serial correlation can substantially overstate statistical significance and evaluates correction methods, including clustering and aggregation, for more reliable inference.
Citation
Marianne Bertrand, Esther Duflo, and Sendhil Mullainathan. "How Much Should We Trust Differences-in-Differences Estimates?." Quarterly Journal of Economics, 2004.
BibTeX
@article{Bertrand2004How,
title = {How Much Should We Trust Differences-in-Differences Estimates?},
author = {Marianne Bertrand, Esther Duflo, and Sendhil Mullainathan},
year = {2004},
journal = {Quarterly Journal of Economics},
url = {https://academic.oup.com/qje/article-abstract/119/1/249/1876068}
}