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Difference in differences

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1393: 639: 1388:{\displaystyle {\begin{aligned}n_{s}&={\text{ number of individuals in group }}s\\{\overline {y}}_{st}&={\frac {1}{n_{s}}}\sum _{i=1}^{n}y_{it}\ I(s(i)~=~s),\\{\overline {\gamma }}_{s}&={\frac {1}{n_{s}}}\sum _{i=1}^{n}\gamma _{s(i)}\ I(s(i)~=~s)~=~\gamma _{s},\\{\overline {\lambda }}_{st}&={\frac {1}{n_{s}}}\sum _{i=1}^{n}\lambda _{t}\ I(s(i)~=~s)~=~\lambda _{t},\\D_{st}&={\frac {1}{n_{s}}}\sum _{i=1}^{n}I(s(i)~=~{\text{ treatment, }}t{\text{ in after period}})\ I(s(i)~=~s)~=~I(s~=~{\text{ treatment, }}t{\text{ in after period}}),\\{\overline {\varepsilon }}_{st}&={\frac {1}{n_{s}}}\sum _{i=1}^{n}\varepsilon _{it}\ I(s(i)~=~s),\end{aligned}}} 5263: 106: 2091: 4942: 4359: 5472:
and Pennsylvania have parallel trends over time, Pennsylvania's change in employment can be interpreted as the change New Jersey would have experienced, had they not increased the minimum wage, and vice versa. The evidence suggested that the increased minimum wage did not induce a decrease in employment in New Jersey, contrary to what some economic theory would suggest. The table below shows Card & Krueger's estimates of the treatment effect on employment, measured as
5258:{\displaystyle {\begin{aligned}{\widehat {E}}(y\mid T=1,~S=0)&={\widehat {E}}(y\mid {\text{ after period, control}})\\\\&={\frac {{\widehat {E}}(y\ I({\text{ after period, control}}))}{{\widehat {P}}({\text{ after period, control}})}}\\\\&={\frac {\sum _{i=1}^{n}y_{i,{\text{after}}}I(i{\text{ in control}})}{n_{\text{control}}}}={\overline {y}}_{\text{control, after}}\\\\&={\overline {y}}_{\text{12}}\end{aligned}}} 1498: 4936:. This nuance is important to understand when the user believes (weak) violations of parallel pre-trend exist or in the case of violations of the appropriate counterfactual approximation assumptions given the existence of non-common shocks or confounding events. To see the relation between this notation and the previous section, consider as above only one observation per time period for each group, then 3735: 2865:. This involves 'Matching' known 'treatment' units with simulated counterfactual 'control' units: characteristically equivalent units which did not receive treatment. By defining the Outcome Variable as a temporal difference (change in observed outcome between pre- and posttreatment periods), and Matching multiple units in a large sample on the basis of similar pre-treatment histories, the resulting 2662: 2869:(i.e. the ATT: Average Treatment Effect for the Treated) provides a robust difference-in-differences estimate of treatment effects. This serves two statistical purposes: firstly, conditional on pre-treatment covariates, the parallel trends assumption is likely to hold; and secondly, this approach reduces dependence on associated ignorability assumptions necessary for valid inference. 2086:{\displaystyle {\begin{aligned}&({\overline {y}}_{11}-{\overline {y}}_{12})-({\overline {y}}_{21}-{\overline {y}}_{22})\\={}&{\big }\\&\qquad {}-{\big }\\={}&\delta (D_{11}-D_{12})+\delta (D_{22}-D_{21})+{\overline {\varepsilon }}_{11}-{\overline {\varepsilon }}_{12}+{\overline {\varepsilon }}_{22}-{\overline {\varepsilon }}_{21}.\end{aligned}}} 141:) can be explained as being an effect of the treatment, because the treatment group and control group did not start out at the same point at time 1. DID, therefore, calculates the "normal" difference in the outcome variable between the two groups (the difference that would still exist if neither group experienced the treatment), represented by the dotted line 4354:{\displaystyle {\begin{aligned}{\hat {\beta }}_{0}&={\widehat {E}}(y\mid T=0,~S=0)\\{\hat {\beta }}_{1}&={\widehat {E}}(y\mid T=1,~S=0)-{\widehat {E}}(y\mid T=0,~S=0)\\{\hat {\beta }}_{2}&={\widehat {E}}(y\mid T=0,~S=1)-{\widehat {E}}(y\mid T=0,~S=0)\\{\hat {\beta }}_{3}&={\big }\\&\qquad {}-{\big },\end{aligned}}} 5471:
such as weather and macroeconomic conditions of the region. By including Pennsylvania as a control in a difference-in-differences model, any bias caused by variables common to New Jersey and Pennsylvania is implicitly controlled for, even when these variables are unobserved. Assuming that New Jersey
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Difference in differences requires data measured from a treatment group and a control group at two or more different time periods, specifically at least one time period before "treatment" and at least one time period after "treatment." In the example pictured, the outcome in the treatment group is
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represented by the line P and the outcome in the control group is represented by the line S. The outcome (dependent) variable in both groups is measured at time 1, before either group has received the treatment (i.e., the independent or explanatory variable), represented by the points
2620:. Below it is shown how this estimator can be read as a coefficient in an ordinary least squares regression. The model described in this section is over-parametrized; to remedy that, one of the coefficients for the dummy variables can be set to 0, for example, we may set 2585: 2880:
would have been with parallel trends, had there been no treatment. The Achilles' heel of DID is when something other than the treatment changes in one group but not the other at the same time as the treatment, implying a violation of the parallel trend assumption.
2859: 4947: 3524: 2302: 292: 5467:, in February 1992 and in November 1992, after New Jersey's minimum wage rose from $ 4.25 to $ 5.05 in April 1992. Observing a change in employment in New Jersey only, before and after the treatment, would fail to control for 127:. The treatment group then receives or experiences the treatment and both groups are again measured at time 2. Not all of the difference between the treatment and control groups at time 2 (that is, the difference between 66:) by comparing the average change over time in the outcome variable for the treatment group to the average change over time for the control group. Although it is intended to mitigate the effects of extraneous factors and 3740: 2884:
To guarantee the accuracy of the DID estimate, the composition of individuals of the two groups is assumed to remain unchanged over time. When using a DID model, various issues that may compromise the results, such as
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is not actually conditional on the treatment or control group. Consistently, a difference among the treatment and control groups would eliminate the need for treatment differentials (i.e.,
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may well be more realistic. In order to increase the likelihood of the parallel trend assumption holding, a difference-in-differences approach is often combined with
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Card, David; Krueger, Alan B. (1994). "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania".
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is an estimate of the counterfactual rather than the impact of the control group. The control group is often used as a proxy for the
5917: 3729:, furthermore, it turns out that the group and period averages in that section relate to the model parameter estimates as follows 97:
to measure the differences, between the treatment and control group, of the changes in the outcome variable that occur over time.
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of the treatment effect (which measures the difference between treatment and control groups), difference in differences uses
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can be interpreted as the impact of both the control group and the intervention's (treatment's) counterfactual. Similarly,
2580:{\displaystyle {\hat {\delta }}~=~({\overline {y}}_{11}-{\overline {y}}_{12})-({\overline {y}}_{21}-{\overline {y}}_{22}),} 6030: 5476:. Card and Krueger estimate that the $ 0.80 minimum wage increase in New Jersey led to a 2.75 FTE increase in employment. 6045: 6035: 4367: 449: 3338: 4685: 5593: 2307: 6014: 6050: 4576:, due to the parallel trend assumption, is also the same differential between the treatment and control group in 2901:
The DID method can be implemented according to the table below, where the lower right cell is the DID estimator.
105: 5807: 5571: 5566: 4602:. The above descriptions should not be construed to imply the (average) effect of only the control group, for 4501: 2866: 2680: 2398: 70:, depending on how the treatment group is chosen, this method may still be subject to certain biases (e.g., 5723: 5602: 2670: 2097: 75: 71: 4903: 4867: 4831: 4795: 4759: 4641: 4605: 4543: 4507: 4463: 5561: 5468: 2862: 328: 79: 39: 5451:, published in 1994, is considered one of the most famous DID studies; Card was later awarded the 2021 599: 6055: 5473: 2890: 59: 5607: 3297: 3256: 3208: 3082: 2623: 90: 47: 2872:
As illustrated to the right, the treatment effect is the difference between the observed value of
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above accurately represents reality, this assumption automatically holds. However, a model with
422: 5913: 5886: 5880: 5693: 5687: 2365: 455: 579: 5994: 5971: 5950: 5905: 5847: 5776: 5732: 5660: 5612: 3180: 3152: 3054: 3026: 2909: 2593: 1465: 300: 5549: 3696: 2854:{\displaystyle \lambda _{st}~:~\lambda _{22}-\lambda _{21}\neq \lambda _{12}-\lambda _{11}} 2661: 1433: 1401: 3725:. Although it is not shown rigorously here, this is a proper parametrization of the model 2886: 373: 4579: 4437: 4411: 3638: 3572: 3125: 2999: 2967: 2940: 2746: 2720: 2339: 2313: 3519:{\displaystyle y~=~\beta _{0}+\beta _{1}T+\beta _{2}S+\beta _{3}(T\cdot S)+\varepsilon } 2297:{\displaystyle \operatorname {E} \left~=~\delta (D_{11}-D_{12})+\delta (D_{22}-D_{21}).} 572:
is the time trend shared by both groups according to the parallel trend assumption (see
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Consider the average of the dependent variable and dummy indicators by group and time:
528: 481: 402: 353: 333: 287:{\displaystyle y_{it}~=~\gamma _{s(i)}+\lambda _{t}+\delta I(\dots )+\varepsilon _{it}} 67: 50:, by studying the differential effect of a treatment on a 'treatment group' versus a ' 6024: 5936: 5927: 5861: 5744: 51: 4638:, or only the difference of the treatment and control groups in the pre-period, for 5639: 5624: 5464: 5456: 5444: 5440: 4679: 35: 5987:"Inference with 'Difference in Differences' with a Small Number of Policy Changes" 5788: 5672: 5836:"diff: Simplifying the estimation of difference-in-differences treatment effects" 1492:
is not random; it just encodes how the groups and the periods are labeled. Then
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of the treatment effect on subjects (which analyzes differences over time) or a
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which can be interpreted as the treatment effect of the treatment indicated by
58:. It calculates the effect of a treatment (i.e., an explanatory variable or an 5448: 5436: 4675: 94: 43: 31: 5909: 5616: 5460: 3418:
Running a regression analysis gives the same result. Consider the OLS model
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Abadie, A. (2005). "Semiparametric difference-in-differences estimators".
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But this is the expression for the treatment effect that was given in the
170:.) The treatment effect is the difference between the observed outcome (P 5954: 5820: 5759: 5643: 5413:{\displaystyle {\hat {\beta }}_{3}~=~(y_{11}-y_{21})-(y_{12}-y_{22}).} 4408:
stands for conditional averages computed on the sample, for example,
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Statistical technique to use observational data for causal analysis
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Bertrand, Marianne; Duflo, Esther; Mullainathan, Sendhil (2004).
5760:"How Much Should We Trust Differences-In-Differences Estimates?" 5644:"How Much Should We Trust Differences-in-Differences Estimates?" 5544:
A software example application of this research is found on the
5937:"Recent Developments in the Econometrics of Program Evaluation" 5455:
in part for this and related work. Card and Krueger compared
4682:, below, a first (time) difference of the outcome variable 5882:
Mostly Harmless Econometrics: An Empiricist's Companion
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Mostly Harmless Econometrics: An Empiricist's Companion
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belongs (i.e. the treatment or the control group), and
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is true, and 0 otherwise. In the plot of time versus
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for a deeper understanding of this point). Thereby,
174:) and the "normal" outcome (the difference between P 3615:is a dummy variable for group membership, equal to 5412: 5300: 5280: 5257: 4928: 4892: 4856: 4820: 4784: 4748: 4666: 4630: 4594: 4568: 4532: 4488: 4452: 4426: 4400: 4353: 3717: 3685: 3653: 3627: 3607: 3587: 3561: 3541: 3518: 3405: 3326: 3285: 3237: 3196: 3168: 3140: 3111: 3070: 3042: 3014: 2982: 2955: 2928: 2853: 2761: 2735: 2709: 2673:apply equally to DID. In addition, DID requires a 2645: 2612: 2579: 2446: 2387: 2354: 2328: 2296: 2085: 1484: 1454: 1422: 1387: 618: 588: 564: 537: 517: 490: 470: 440: 411: 391: 362: 342: 319: 286: 5935:Imbens, Guido W.; Wooldridge, Jeffrey M. (2009). 4460:is an indicator for the control group. Note that 4401:{\displaystyle {\widehat {E}}(\dots \mid \dots )} 42:in the social sciences that attempts to mimic an 5904:. Cambridge university press. pp. 768–772. 5885:. Princeton University Press. pp. 227–243. 5692:. Princeton University Press. pp. 227–243. 5900:Cameron, Arthur C.; Trivedi, Pravin K. (2005). 3406:{\displaystyle (y_{11}-y_{21})-(y_{12}-y_{22})} 4749:{\displaystyle (\Delta Y_{i}=Y_{i,1}-Y_{i,0})} 62:) on an outcome (i.e., a response variable or 4339: 4233: 4213: 4107: 3549:is a dummy variable for the period, equal to 2665:Illustration of the parallel trend assumption 1913: 1773: 1753: 1613: 8: 525:is the vertical intercept for the graph for 5902:Microeconometrics: Methods and Applications 5962:Bakija, Jon; Heim, Bradley (August 2008). 4756:eliminates the need for time-trend (i.e., 2677:. The parallel trend assumption says that 666: number of individuals in group  5998: 5975: 5851: 5606: 5453:Nobel Memorial Prize in Economic Sciences 5398: 5385: 5366: 5353: 5331: 5320: 5319: 5316: 5293: 5273: 5245: 5235: 5215: 5205: 5193: 5180: 5164: 5157: 5147: 5136: 5129: 5105: 5091: 5090: 5077: 5051: 5050: 5047: 5026: 5006: 5005: 4951: 4950: 4946: 4944: 4920: 4909: 4908: 4905: 4884: 4873: 4872: 4869: 4848: 4837: 4836: 4833: 4812: 4801: 4800: 4797: 4776: 4765: 4764: 4761: 4731: 4712: 4699: 4687: 4658: 4647: 4646: 4643: 4622: 4611: 4610: 4607: 4581: 4560: 4549: 4548: 4545: 4524: 4513: 4512: 4509: 4480: 4469: 4468: 4465: 4439: 4413: 4372: 4371: 4369: 4338: 4337: 4290: 4289: 4239: 4238: 4232: 4231: 4226: 4212: 4211: 4164: 4163: 4113: 4112: 4106: 4105: 4092: 4081: 4080: 4028: 4027: 3977: 3976: 3963: 3952: 3951: 3899: 3898: 3848: 3847: 3834: 3823: 3822: 3770: 3769: 3756: 3745: 3744: 3739: 3737: 3698: 3666: 3640: 3620: 3600: 3574: 3554: 3534: 3489: 3473: 3457: 3444: 3426: 3394: 3381: 3362: 3349: 3340: 3318: 3305: 3299: 3277: 3264: 3258: 3229: 3216: 3210: 3188: 3182: 3160: 3154: 3127: 3103: 3090: 3084: 3062: 3056: 3034: 3028: 3001: 2969: 2942: 2917: 2911: 2845: 2832: 2819: 2806: 2784: 2778: 2748: 2722: 2710:{\displaystyle \lambda _{2}-\lambda _{1}} 2701: 2688: 2682: 2631: 2625: 2601: 2595: 2565: 2555: 2545: 2535: 2519: 2509: 2499: 2489: 2465: 2464: 2462: 2432: 2419: 2406: 2400: 2373: 2367: 2341: 2315: 2282: 2269: 2247: 2234: 2201: 2191: 2181: 2171: 2155: 2145: 2135: 2125: 2108: 2070: 2060: 2050: 2040: 2030: 2020: 2010: 2000: 1987: 1974: 1952: 1939: 1925: 1912: 1911: 1902: 1892: 1882: 1866: 1853: 1834: 1824: 1814: 1798: 1785: 1772: 1771: 1766: 1752: 1751: 1742: 1732: 1722: 1706: 1693: 1674: 1664: 1654: 1638: 1625: 1612: 1611: 1605: 1589: 1579: 1569: 1559: 1543: 1533: 1523: 1513: 1502: 1500: 1473: 1467: 1435: 1403: 1333: 1323: 1312: 1300: 1291: 1275: 1265: 1249: 1241: 1170: 1162: 1129: 1118: 1106: 1097: 1081: 1064: 1009: 999: 988: 976: 967: 951: 941: 927: 863: 853: 842: 830: 821: 808: 798: 745: 735: 724: 712: 703: 687: 677: 664: 651: 643: 641: 607: 601: 581: 556: 550: 530: 509: 503: 483: 457: 424: 404: 375: 355: 335: 308: 302: 275: 244: 222: 200: 194: 5478: 2903: 5879:Angrist, J. D.; Pischke, J. S. (2008). 5800: 5798: 5686:Angrist, J. D.; Pischke, J. S. (2008). 5583: 4434:is the indicator for the after period, 452:equal to 1 when the event described in 5424: 3726: 2770: 2447:{\displaystyle D_{11}=D_{12}=D_{21}=0} 2893:, must be considered and dealt with. 7: 5991:NBER Technical Working Paper No. 312 3693:is a dummy variable indicating when 6015:Difference in Difference Estimation 5985:Conley, T.; Taber, C. (July 2005). 4929:{\displaystyle {\hat {\beta }}_{3}} 4893:{\displaystyle {\hat {\beta }}_{2}} 4857:{\displaystyle {\hat {\beta }}_{1}} 4821:{\displaystyle {\hat {\beta }}_{3}} 4785:{\displaystyle {\hat {\beta }}_{1}} 4667:{\displaystyle {\hat {\beta }}_{2}} 4631:{\displaystyle {\hat {\beta }}_{1}} 4569:{\displaystyle {\hat {\beta }}_{2}} 4533:{\displaystyle {\hat {\beta }}_{1}} 4489:{\displaystyle {\hat {\beta }}_{1}} 4900:) to form an unbiased estimate of 4792:) to form an unbiased estimate of 4692: 2110: 14: 619:{\displaystyle \varepsilon _{it}} 1398:and suppose for simplicity that 573: 5548:'s command -diff- authored by 5474:FTEs (or full-time equivalents) 4225: 1765: 6017:, Healthcare Economist website 5942:Journal of Economic Literature 5768:Quarterly Journal of Economics 5652:Quarterly Journal of Economics 5404: 5378: 5372: 5346: 5325: 5268:and so on for other values of 5185: 5174: 5110: 5102: 5085: 5082: 5074: 5062: 5031: 5017: 4995: 4962: 4914: 4878: 4842: 4806: 4770: 4743: 4689: 4652: 4616: 4554: 4518: 4474: 4395: 4383: 4334: 4301: 4283: 4250: 4208: 4175: 4157: 4124: 4086: 4072: 4039: 4021: 3988: 3957: 3943: 3910: 3892: 3859: 3828: 3814: 3781: 3750: 3680: 3668: 3507: 3495: 3400: 3374: 3368: 3342: 2571: 2531: 2525: 2485: 2470: 2288: 2262: 2253: 2227: 2207: 2167: 2161: 2121: 1993: 1967: 1958: 1932: 1908: 1846: 1840: 1778: 1748: 1686: 1680: 1618: 1595: 1555: 1549: 1509: 1375: 1360: 1354: 1348: 1254: 1226: 1211: 1196: 1190: 1184: 1175: 1150: 1144: 1138: 1048: 1033: 1027: 1021: 911: 896: 890: 884: 873: 867: 787: 772: 766: 760: 465: 459: 435: 429: 386: 380: 327:is the dependent variable for 265: 259: 232: 226: 156:is the same as the slope from 145:. (Notice that the slope from 1: 3327:{\displaystyle y_{11}-y_{12}} 3286:{\displaystyle y_{21}-y_{22}} 3238:{\displaystyle y_{11}-y_{21}} 3112:{\displaystyle y_{12}-y_{22}} 2646:{\displaystyle \gamma _{1}=0} 596:is the treatment effect, and 5968:NBER Working Paper No. 14237 5463:sector in New Jersey and in 5240: 5210: 2560: 2540: 2514: 2494: 2336:is the treatment group, and 2196: 2176: 2150: 2130: 2098:strict exogeneity assumption 2065: 2045: 2025: 2005: 1897: 1829: 1737: 1669: 1584: 1564: 1538: 1518: 1270: 946: 803: 682: 565:{\displaystyle \lambda _{t}} 44:experimental research design 5642:; Mullainathan, S. (2004). 5107: after period, control 5079: after period, control 5028: after period, control 2669:All the assumptions of the 2454:, giving the DID estimator 518:{\displaystyle \gamma _{s}} 6072: 5853:10.1177/1536867X1601600108 5781:10.1162/003355304772839588 5665:10.1162/003355304772839588 5594:Review of Economic Studies 3686:{\displaystyle (T\cdot S)} 2362:is the after period, then 2308:Without loss of generality 5308:, which is equivalent to 3661:. The composite variable 2675:parallel trend assumption 441:{\displaystyle I(\dots )} 20:Difference in differences 5910:10.1017/CBO9780511811241 5808:American Economic Review 5572:Synthetic control method 5567:Average treatment effect 5427:and in the above table. 4502:Synthetic control method 2388:{\displaystyle D_{22}=1} 471:{\displaystyle (\dots )} 48:observational study data 5834:Villa, Juan M. (2016). 5617:10.1111/0034-6527.00321 589:{\displaystyle \delta } 5414: 5302: 5282: 5259: 5152: 4930: 4894: 4858: 4822: 4786: 4750: 4668: 4632: 4596: 4570: 4534: 4490: 4454: 4428: 4402: 4355: 3719: 3687: 3655: 3629: 3609: 3589: 3563: 3543: 3520: 3407: 3328: 3287: 3239: 3198: 3197:{\displaystyle y_{11}} 3170: 3169:{\displaystyle y_{21}} 3142: 3113: 3072: 3071:{\displaystyle y_{12}} 3044: 3043:{\displaystyle y_{22}} 3016: 2984: 2957: 2930: 2929:{\displaystyle y_{st}} 2876:and what the value of 2855: 2763: 2737: 2711: 2666: 2647: 2614: 2613:{\displaystyle D_{st}} 2581: 2448: 2389: 2356: 2330: 2298: 2087: 1486: 1485:{\displaystyle D_{st}} 1456: 1424: 1389: 1328: 1243: treatment,  1164: treatment,  1134: 1004: 858: 740: 620: 590: 566: 539: 519: 492: 472: 448:is short-hand for the 442: 413: 399:is the group to which 393: 364: 344: 321: 320:{\displaystyle y_{it}} 288: 109: 91:cross-section estimate 6041:Design of experiments 5737:10.1353/obs.2020.0011 5724:Observational Studies 5562:Design of experiments 5415: 5303: 5283: 5260: 5132: 4931: 4895: 4859: 4823: 4787: 4751: 4669: 4633: 4597: 4571: 4535: 4491: 4455: 4429: 4403: 4356: 3720: 3718:{\displaystyle S=T=1} 3688: 3656: 3630: 3610: 3590: 3564: 3544: 3521: 3408: 3329: 3288: 3240: 3199: 3171: 3143: 3114: 3073: 3045: 3017: 2985: 2958: 2931: 2856: 2764: 2738: 2717:are the same in both 2712: 2664: 2648: 2615: 2582: 2449: 2390: 2357: 2331: 2299: 2088: 1487: 1457: 1455:{\displaystyle t=1,2} 1425: 1423:{\displaystyle s=1,2} 1390: 1308: 1251: in after period 1172: in after period 1114: 984: 838: 720: 621: 591: 567: 540: 520: 493: 473: 443: 414: 394: 365: 345: 322: 289: 108: 80:omitted variable bias 40:quantitative research 32:statistical technique 6031:Econometric modeling 5315: 5292: 5272: 4943: 4904: 4868: 4832: 4796: 4760: 4686: 4642: 4606: 4580: 4544: 4508: 4464: 4438: 4412: 4368: 3736: 3697: 3665: 3639: 3619: 3599: 3573: 3553: 3533: 3425: 3339: 3298: 3257: 3209: 3181: 3153: 3126: 3083: 3055: 3027: 3000: 2968: 2941: 2910: 2777: 2747: 2721: 2681: 2624: 2594: 2461: 2399: 2366: 2340: 2314: 2107: 1499: 1466: 1434: 1402: 640: 600: 580: 549: 529: 502: 482: 456: 423: 403: 392:{\displaystyle s(i)} 374: 354: 334: 301: 193: 87:time-series estimate 60:independent variable 6046:Observational study 6036:Regression analysis 4595:{\displaystyle T=1} 4453:{\displaystyle S=0} 4427:{\displaystyle T=1} 3654:{\displaystyle s=2} 3588:{\displaystyle t=2} 3141:{\displaystyle t=1} 3015:{\displaystyle t=2} 2983:{\displaystyle s=1} 2956:{\displaystyle s=2} 2762:{\displaystyle s=2} 2736:{\displaystyle s=1} 2355:{\displaystyle t=2} 2329:{\displaystyle s=2} 186:Consider the model 5955:10.1257/jel.47.1.5 5410: 5298: 5278: 5255: 5253: 4926: 4890: 4854: 4818: 4782: 4746: 4664: 4628: 4592: 4566: 4530: 4486: 4450: 4424: 4398: 4351: 4349: 3715: 3683: 3651: 3625: 3605: 3585: 3559: 3539: 3516: 3403: 3324: 3283: 3235: 3194: 3166: 3138: 3109: 3068: 3040: 3012: 2980: 2953: 2926: 2851: 2759: 2733: 2707: 2667: 2643: 2610: 2577: 2444: 2385: 2352: 2326: 2294: 2100:then implies that 2083: 2081: 1482: 1452: 1420: 1385: 1383: 616: 586: 562: 535: 515: 488: 468: 438: 409: 389: 360: 340: 317: 284: 110: 101:General definition 64:dependent variable 56:natural experiment 5892:978-0-691-12034-8 5840:The Stata Journal 5699:978-0-691-12034-8 5550:Juan Miguel Villa 5542: 5541: 5469:omitted variables 5425:formal definition 5345: 5339: 5328: 5301:{\displaystyle S} 5281:{\displaystyle T} 5248: 5243: 5218: 5213: 5199: 5196: 5183: 5167: 5114: 5108: 5099: 5080: 5070: 5059: 5029: 5014: 4985: 4959: 4917: 4881: 4845: 4809: 4773: 4655: 4619: 4557: 4521: 4477: 4380: 4324: 4298: 4273: 4247: 4198: 4172: 4147: 4121: 4089: 4062: 4036: 4011: 3985: 3960: 3933: 3907: 3882: 3856: 3831: 3804: 3778: 3753: 3727:formal definition 3628:{\displaystyle 1} 3608:{\displaystyle S} 3562:{\displaystyle 1} 3542:{\displaystyle T} 3439: 3433: 3416: 3415: 2801: 2795: 2771:formal definition 2769:. Given that the 2563: 2543: 2517: 2497: 2484: 2478: 2473: 2223: 2217: 2199: 2179: 2153: 2133: 2068: 2048: 2028: 2008: 1900: 1832: 1740: 1672: 1587: 1567: 1541: 1521: 1371: 1365: 1344: 1306: 1273: 1252: 1244: 1240: 1234: 1222: 1216: 1207: 1201: 1180: 1173: 1165: 1161: 1155: 1112: 1059: 1053: 1044: 1038: 1017: 982: 949: 922: 916: 907: 901: 880: 836: 806: 783: 777: 756: 718: 685: 667: 538:{\displaystyle s} 491:{\displaystyle Y} 412:{\displaystyle i} 363:{\displaystyle t} 343:{\displaystyle i} 217: 211: 182:Formal definition 85:In contrast to a 76:reverse causality 6063: 6051:Causal inference 6004: 6002: 5981: 5979: 5958: 5931: 5896: 5866: 5865: 5855: 5831: 5825: 5824: 5802: 5793: 5792: 5764: 5755: 5749: 5748: 5710: 5704: 5703: 5683: 5677: 5676: 5648: 5635: 5629: 5628: 5610: 5588: 5479: 5419: 5417: 5416: 5411: 5403: 5402: 5390: 5389: 5371: 5370: 5358: 5357: 5343: 5337: 5336: 5335: 5330: 5329: 5321: 5307: 5305: 5304: 5299: 5287: 5285: 5284: 5279: 5264: 5262: 5261: 5256: 5254: 5250: 5249: 5246: 5244: 5236: 5227: 5224: 5220: 5219: 5216: 5214: 5206: 5200: 5198: 5197: 5194: 5188: 5184: 5182: in control 5181: 5170: 5169: 5168: 5165: 5151: 5146: 5130: 5122: 5119: 5115: 5113: 5109: 5106: 5101: 5100: 5092: 5088: 5081: 5078: 5068: 5061: 5060: 5052: 5048: 5040: 5037: 5030: 5027: 5016: 5015: 5007: 4983: 4961: 4960: 4952: 4935: 4933: 4932: 4927: 4925: 4924: 4919: 4918: 4910: 4899: 4897: 4896: 4891: 4889: 4888: 4883: 4882: 4874: 4863: 4861: 4860: 4855: 4853: 4852: 4847: 4846: 4838: 4828:, implying that 4827: 4825: 4824: 4819: 4817: 4816: 4811: 4810: 4802: 4791: 4789: 4788: 4783: 4781: 4780: 4775: 4774: 4766: 4755: 4753: 4752: 4747: 4742: 4741: 4723: 4722: 4704: 4703: 4673: 4671: 4670: 4665: 4663: 4662: 4657: 4656: 4648: 4637: 4635: 4634: 4629: 4627: 4626: 4621: 4620: 4612: 4601: 4599: 4598: 4593: 4575: 4573: 4572: 4567: 4565: 4564: 4559: 4558: 4550: 4539: 4537: 4536: 4531: 4529: 4528: 4523: 4522: 4514: 4495: 4493: 4492: 4487: 4485: 4484: 4479: 4478: 4470: 4459: 4457: 4456: 4451: 4433: 4431: 4430: 4425: 4407: 4405: 4404: 4399: 4382: 4381: 4373: 4360: 4358: 4357: 4352: 4350: 4343: 4342: 4322: 4300: 4299: 4291: 4271: 4249: 4248: 4240: 4237: 4236: 4227: 4221: 4217: 4216: 4196: 4174: 4173: 4165: 4145: 4123: 4122: 4114: 4111: 4110: 4097: 4096: 4091: 4090: 4082: 4060: 4038: 4037: 4029: 4009: 3987: 3986: 3978: 3968: 3967: 3962: 3961: 3953: 3931: 3909: 3908: 3900: 3880: 3858: 3857: 3849: 3839: 3838: 3833: 3832: 3824: 3802: 3780: 3779: 3771: 3761: 3760: 3755: 3754: 3746: 3724: 3722: 3721: 3716: 3692: 3690: 3689: 3684: 3660: 3658: 3657: 3652: 3634: 3632: 3631: 3626: 3614: 3612: 3611: 3606: 3594: 3592: 3591: 3586: 3568: 3566: 3565: 3560: 3548: 3546: 3545: 3540: 3525: 3523: 3522: 3517: 3494: 3493: 3478: 3477: 3462: 3461: 3449: 3448: 3437: 3431: 3412: 3410: 3409: 3404: 3399: 3398: 3386: 3385: 3367: 3366: 3354: 3353: 3333: 3331: 3330: 3325: 3323: 3322: 3310: 3309: 3292: 3290: 3289: 3284: 3282: 3281: 3269: 3268: 3244: 3242: 3241: 3236: 3234: 3233: 3221: 3220: 3203: 3201: 3200: 3195: 3193: 3192: 3175: 3173: 3172: 3167: 3165: 3164: 3147: 3145: 3144: 3139: 3118: 3116: 3115: 3110: 3108: 3107: 3095: 3094: 3077: 3075: 3074: 3069: 3067: 3066: 3049: 3047: 3046: 3041: 3039: 3038: 3021: 3019: 3018: 3013: 2989: 2987: 2986: 2981: 2962: 2960: 2959: 2954: 2935: 2933: 2932: 2927: 2925: 2924: 2904: 2891:Ashenfelter dips 2860: 2858: 2857: 2852: 2850: 2849: 2837: 2836: 2824: 2823: 2811: 2810: 2799: 2793: 2792: 2791: 2768: 2766: 2765: 2760: 2742: 2740: 2739: 2734: 2716: 2714: 2713: 2708: 2706: 2705: 2693: 2692: 2652: 2650: 2649: 2644: 2636: 2635: 2619: 2617: 2616: 2611: 2609: 2608: 2586: 2584: 2583: 2578: 2570: 2569: 2564: 2556: 2550: 2549: 2544: 2536: 2524: 2523: 2518: 2510: 2504: 2503: 2498: 2490: 2482: 2476: 2475: 2474: 2466: 2453: 2451: 2450: 2445: 2437: 2436: 2424: 2423: 2411: 2410: 2394: 2392: 2391: 2386: 2378: 2377: 2361: 2359: 2358: 2353: 2335: 2333: 2332: 2327: 2303: 2301: 2300: 2295: 2287: 2286: 2274: 2273: 2252: 2251: 2239: 2238: 2221: 2215: 2214: 2210: 2206: 2205: 2200: 2192: 2186: 2185: 2180: 2172: 2160: 2159: 2154: 2146: 2140: 2139: 2134: 2126: 2092: 2090: 2089: 2084: 2082: 2075: 2074: 2069: 2061: 2055: 2054: 2049: 2041: 2035: 2034: 2029: 2021: 2015: 2014: 2009: 2001: 1992: 1991: 1979: 1978: 1957: 1956: 1944: 1943: 1926: 1917: 1916: 1907: 1906: 1901: 1893: 1887: 1886: 1871: 1870: 1858: 1857: 1839: 1838: 1833: 1825: 1819: 1818: 1803: 1802: 1790: 1789: 1777: 1776: 1767: 1761: 1757: 1756: 1747: 1746: 1741: 1733: 1727: 1726: 1711: 1710: 1698: 1697: 1679: 1678: 1673: 1665: 1659: 1658: 1643: 1642: 1630: 1629: 1617: 1616: 1606: 1594: 1593: 1588: 1580: 1574: 1573: 1568: 1560: 1548: 1547: 1542: 1534: 1528: 1527: 1522: 1514: 1505: 1491: 1489: 1488: 1483: 1481: 1480: 1461: 1459: 1458: 1453: 1429: 1427: 1426: 1421: 1394: 1392: 1391: 1386: 1384: 1369: 1363: 1342: 1341: 1340: 1327: 1322: 1307: 1305: 1304: 1292: 1283: 1282: 1274: 1266: 1253: 1250: 1245: 1242: 1238: 1232: 1220: 1214: 1205: 1199: 1178: 1174: 1171: 1166: 1163: 1159: 1153: 1133: 1128: 1113: 1111: 1110: 1098: 1089: 1088: 1069: 1068: 1057: 1051: 1042: 1036: 1015: 1014: 1013: 1003: 998: 983: 981: 980: 968: 959: 958: 950: 942: 932: 931: 920: 914: 905: 899: 878: 877: 876: 857: 852: 837: 835: 834: 822: 813: 812: 807: 799: 781: 775: 754: 753: 752: 739: 734: 719: 717: 716: 704: 695: 694: 686: 678: 668: 665: 656: 655: 625: 623: 622: 617: 615: 614: 595: 593: 592: 587: 571: 569: 568: 563: 561: 560: 544: 542: 541: 536: 524: 522: 521: 516: 514: 513: 497: 495: 494: 489: 477: 475: 474: 469: 447: 445: 444: 439: 418: 416: 415: 410: 398: 396: 395: 390: 369: 367: 366: 361: 349: 347: 346: 341: 326: 324: 323: 318: 316: 315: 293: 291: 290: 285: 283: 282: 249: 248: 236: 235: 215: 209: 208: 207: 6071: 6070: 6066: 6065: 6064: 6062: 6061: 6060: 6021: 6020: 6011: 5984: 5961: 5934: 5920: 5899: 5893: 5878: 5875: 5873:Further reading 5870: 5869: 5833: 5832: 5828: 5804: 5803: 5796: 5762: 5757: 5756: 5752: 5713:Basu, Pallavi; 5712: 5711: 5707: 5700: 5685: 5684: 5680: 5646: 5637: 5636: 5632: 5608:10.1.1.470.1475 5590: 5589: 5585: 5580: 5558: 5433: 5394: 5381: 5362: 5349: 5318: 5313: 5312: 5290: 5289: 5270: 5269: 5252: 5251: 5234: 5225: 5222: 5221: 5204: 5189: 5153: 5131: 5120: 5117: 5116: 5089: 5049: 5038: 5035: 5034: 4998: 4941: 4940: 4907: 4902: 4901: 4871: 4866: 4865: 4835: 4830: 4829: 4799: 4794: 4793: 4763: 4758: 4757: 4727: 4708: 4695: 4684: 4683: 4645: 4640: 4639: 4609: 4604: 4603: 4578: 4577: 4547: 4542: 4541: 4511: 4506: 4505: 4467: 4462: 4461: 4436: 4435: 4410: 4409: 4366: 4365: 4348: 4347: 4219: 4218: 4098: 4079: 4076: 4075: 3969: 3950: 3947: 3946: 3840: 3821: 3818: 3817: 3762: 3743: 3734: 3733: 3695: 3694: 3663: 3662: 3637: 3636: 3617: 3616: 3597: 3596: 3571: 3570: 3551: 3550: 3531: 3530: 3485: 3469: 3453: 3440: 3423: 3422: 3390: 3377: 3358: 3345: 3337: 3336: 3314: 3301: 3296: 3295: 3273: 3260: 3255: 3254: 3225: 3212: 3207: 3206: 3184: 3179: 3178: 3156: 3151: 3150: 3124: 3123: 3099: 3086: 3081: 3080: 3058: 3053: 3052: 3030: 3025: 3024: 2998: 2997: 2966: 2965: 2939: 2938: 2913: 2908: 2907: 2899: 2887:autocorrelation 2841: 2828: 2815: 2802: 2780: 2775: 2774: 2745: 2744: 2719: 2718: 2697: 2684: 2679: 2678: 2659: 2627: 2622: 2621: 2597: 2592: 2591: 2554: 2534: 2508: 2488: 2459: 2458: 2428: 2415: 2402: 2397: 2396: 2369: 2364: 2363: 2338: 2337: 2312: 2311: 2278: 2265: 2243: 2230: 2190: 2170: 2144: 2124: 2120: 2116: 2105: 2104: 2080: 2079: 2059: 2039: 2019: 1999: 1983: 1970: 1948: 1935: 1927: 1919: 1918: 1891: 1878: 1862: 1849: 1823: 1810: 1794: 1781: 1759: 1758: 1731: 1718: 1702: 1689: 1663: 1650: 1634: 1621: 1607: 1599: 1598: 1578: 1558: 1532: 1512: 1497: 1496: 1469: 1464: 1463: 1432: 1431: 1400: 1399: 1382: 1381: 1329: 1296: 1284: 1264: 1261: 1260: 1102: 1090: 1077: 1074: 1073: 1060: 1005: 972: 960: 940: 937: 936: 923: 859: 826: 814: 797: 794: 793: 741: 708: 696: 676: 673: 672: 657: 647: 638: 637: 603: 598: 597: 578: 577: 552: 547: 546: 527: 526: 505: 500: 499: 480: 479: 454: 453: 421: 420: 401: 400: 372: 371: 352: 351: 332: 331: 304: 299: 298: 271: 240: 218: 196: 191: 190: 184: 177: 173: 169: 162: 151: 140: 133: 126: 119: 103: 72:mean regression 17: 12: 11: 5: 6069: 6067: 6059: 6058: 6053: 6048: 6043: 6038: 6033: 6023: 6022: 6019: 6018: 6010: 6009:External links 6007: 6006: 6005: 5982: 5977:10.3386/w14237 5959: 5932: 5918: 5897: 5891: 5874: 5871: 5868: 5867: 5826: 5815:(4): 772–793. 5794: 5775:(1): 249–275. 5750: 5705: 5698: 5678: 5659:(1): 249–275. 5638:Bertrand, M.; 5630: 5582: 5581: 5579: 5576: 5575: 5574: 5569: 5564: 5557: 5554: 5540: 5539: 5536: 5533: 5530: 5524: 5523: 5520: 5517: 5514: 5508: 5507: 5504: 5501: 5498: 5492: 5491: 5488: 5485: 5482: 5432: 5429: 5421: 5420: 5409: 5406: 5401: 5397: 5393: 5388: 5384: 5380: 5377: 5374: 5369: 5365: 5361: 5356: 5352: 5348: 5342: 5334: 5327: 5324: 5297: 5277: 5266: 5265: 5242: 5239: 5233: 5230: 5228: 5226: 5223: 5217:control, after 5212: 5209: 5203: 5192: 5187: 5179: 5176: 5173: 5163: 5160: 5156: 5150: 5145: 5142: 5139: 5135: 5128: 5125: 5123: 5121: 5118: 5112: 5104: 5098: 5095: 5087: 5084: 5076: 5073: 5067: 5064: 5058: 5055: 5046: 5043: 5041: 5039: 5036: 5033: 5025: 5022: 5019: 5013: 5010: 5004: 5001: 4999: 4997: 4994: 4991: 4988: 4982: 4979: 4976: 4973: 4970: 4967: 4964: 4958: 4955: 4949: 4948: 4923: 4916: 4913: 4887: 4880: 4877: 4851: 4844: 4841: 4815: 4808: 4805: 4779: 4772: 4769: 4745: 4740: 4737: 4734: 4730: 4726: 4721: 4718: 4715: 4711: 4707: 4702: 4698: 4694: 4691: 4661: 4654: 4651: 4625: 4618: 4615: 4591: 4588: 4585: 4563: 4556: 4553: 4527: 4520: 4517: 4498:counterfactual 4483: 4476: 4473: 4449: 4446: 4443: 4423: 4420: 4417: 4397: 4394: 4391: 4388: 4385: 4379: 4376: 4362: 4361: 4346: 4341: 4336: 4333: 4330: 4327: 4321: 4318: 4315: 4312: 4309: 4306: 4303: 4297: 4294: 4288: 4285: 4282: 4279: 4276: 4270: 4267: 4264: 4261: 4258: 4255: 4252: 4246: 4243: 4235: 4230: 4224: 4222: 4220: 4215: 4210: 4207: 4204: 4201: 4195: 4192: 4189: 4186: 4183: 4180: 4177: 4171: 4168: 4162: 4159: 4156: 4153: 4150: 4144: 4141: 4138: 4135: 4132: 4129: 4126: 4120: 4117: 4109: 4104: 4101: 4099: 4095: 4088: 4085: 4078: 4077: 4074: 4071: 4068: 4065: 4059: 4056: 4053: 4050: 4047: 4044: 4041: 4035: 4032: 4026: 4023: 4020: 4017: 4014: 4008: 4005: 4002: 3999: 3996: 3993: 3990: 3984: 3981: 3975: 3972: 3970: 3966: 3959: 3956: 3949: 3948: 3945: 3942: 3939: 3936: 3930: 3927: 3924: 3921: 3918: 3915: 3912: 3906: 3903: 3897: 3894: 3891: 3888: 3885: 3879: 3876: 3873: 3870: 3867: 3864: 3861: 3855: 3852: 3846: 3843: 3841: 3837: 3830: 3827: 3820: 3819: 3816: 3813: 3810: 3807: 3801: 3798: 3795: 3792: 3789: 3786: 3783: 3777: 3774: 3768: 3765: 3763: 3759: 3752: 3749: 3742: 3741: 3714: 3711: 3708: 3705: 3702: 3682: 3679: 3676: 3673: 3670: 3650: 3647: 3644: 3624: 3604: 3584: 3581: 3578: 3558: 3538: 3527: 3526: 3515: 3512: 3509: 3506: 3503: 3500: 3497: 3492: 3488: 3484: 3481: 3476: 3472: 3468: 3465: 3460: 3456: 3452: 3447: 3443: 3436: 3430: 3414: 3413: 3402: 3397: 3393: 3389: 3384: 3380: 3376: 3373: 3370: 3365: 3361: 3357: 3352: 3348: 3344: 3334: 3321: 3317: 3313: 3308: 3304: 3293: 3280: 3276: 3272: 3267: 3263: 3252: 3246: 3245: 3232: 3228: 3224: 3219: 3215: 3204: 3191: 3187: 3176: 3163: 3159: 3148: 3137: 3134: 3131: 3120: 3119: 3106: 3102: 3098: 3093: 3089: 3078: 3065: 3061: 3050: 3037: 3033: 3022: 3011: 3008: 3005: 2994: 2993: 2990: 2979: 2976: 2973: 2963: 2952: 2949: 2946: 2936: 2923: 2920: 2916: 2898: 2897:Implementation 2895: 2848: 2844: 2840: 2835: 2831: 2827: 2822: 2818: 2814: 2809: 2805: 2798: 2790: 2787: 2783: 2758: 2755: 2752: 2732: 2729: 2726: 2704: 2700: 2696: 2691: 2687: 2658: 2655: 2642: 2639: 2634: 2630: 2607: 2604: 2600: 2588: 2587: 2576: 2573: 2568: 2562: 2559: 2553: 2548: 2542: 2539: 2533: 2530: 2527: 2522: 2516: 2513: 2507: 2502: 2496: 2493: 2487: 2481: 2472: 2469: 2443: 2440: 2435: 2431: 2427: 2422: 2418: 2414: 2409: 2405: 2384: 2381: 2376: 2372: 2351: 2348: 2345: 2325: 2322: 2319: 2310:, assume that 2305: 2304: 2293: 2290: 2285: 2281: 2277: 2272: 2268: 2264: 2261: 2258: 2255: 2250: 2246: 2242: 2237: 2233: 2229: 2226: 2220: 2213: 2209: 2204: 2198: 2195: 2189: 2184: 2178: 2175: 2169: 2166: 2163: 2158: 2152: 2149: 2143: 2138: 2132: 2129: 2123: 2119: 2115: 2112: 2094: 2093: 2078: 2073: 2067: 2064: 2058: 2053: 2047: 2044: 2038: 2033: 2027: 2024: 2018: 2013: 2007: 2004: 1998: 1995: 1990: 1986: 1982: 1977: 1973: 1969: 1966: 1963: 1960: 1955: 1951: 1947: 1942: 1938: 1934: 1931: 1928: 1924: 1921: 1920: 1915: 1910: 1905: 1899: 1896: 1890: 1885: 1881: 1877: 1874: 1869: 1865: 1861: 1856: 1852: 1848: 1845: 1842: 1837: 1831: 1828: 1822: 1817: 1813: 1809: 1806: 1801: 1797: 1793: 1788: 1784: 1780: 1775: 1770: 1764: 1762: 1760: 1755: 1750: 1745: 1739: 1736: 1730: 1725: 1721: 1717: 1714: 1709: 1705: 1701: 1696: 1692: 1688: 1685: 1682: 1677: 1671: 1668: 1662: 1657: 1653: 1649: 1646: 1641: 1637: 1633: 1628: 1624: 1620: 1615: 1610: 1608: 1604: 1601: 1600: 1597: 1592: 1586: 1583: 1577: 1572: 1566: 1563: 1557: 1554: 1551: 1546: 1540: 1537: 1531: 1526: 1520: 1517: 1511: 1508: 1506: 1504: 1479: 1476: 1472: 1451: 1448: 1445: 1442: 1439: 1419: 1416: 1413: 1410: 1407: 1396: 1395: 1380: 1377: 1374: 1368: 1362: 1359: 1356: 1353: 1350: 1347: 1339: 1336: 1332: 1326: 1321: 1318: 1315: 1311: 1303: 1299: 1295: 1290: 1287: 1285: 1281: 1278: 1272: 1269: 1263: 1262: 1259: 1256: 1248: 1237: 1231: 1228: 1225: 1219: 1213: 1210: 1204: 1198: 1195: 1192: 1189: 1186: 1183: 1177: 1169: 1158: 1152: 1149: 1146: 1143: 1140: 1137: 1132: 1127: 1124: 1121: 1117: 1109: 1105: 1101: 1096: 1093: 1091: 1087: 1084: 1080: 1076: 1075: 1072: 1067: 1063: 1056: 1050: 1047: 1041: 1035: 1032: 1029: 1026: 1023: 1020: 1012: 1008: 1002: 997: 994: 991: 987: 979: 975: 971: 966: 963: 961: 957: 954: 948: 945: 939: 938: 935: 930: 926: 919: 913: 910: 904: 898: 895: 892: 889: 886: 883: 875: 872: 869: 866: 862: 856: 851: 848: 845: 841: 833: 829: 825: 820: 817: 815: 811: 805: 802: 796: 795: 792: 789: 786: 780: 774: 771: 768: 765: 762: 759: 751: 748: 744: 738: 733: 730: 727: 723: 715: 711: 707: 702: 699: 697: 693: 690: 684: 681: 675: 674: 671: 663: 660: 658: 654: 650: 646: 645: 613: 610: 606: 585: 559: 555: 534: 512: 508: 487: 467: 464: 461: 450:dummy variable 437: 434: 431: 428: 408: 388: 385: 382: 379: 359: 339: 314: 311: 307: 295: 294: 281: 278: 274: 270: 267: 264: 261: 258: 255: 252: 247: 243: 239: 234: 231: 228: 225: 221: 214: 206: 203: 199: 183: 180: 175: 171: 167: 160: 149: 138: 131: 124: 117: 102: 99: 68:selection bias 15: 13: 10: 9: 6: 4: 3: 2: 6068: 6057: 6054: 6052: 6049: 6047: 6044: 6042: 6039: 6037: 6034: 6032: 6029: 6028: 6026: 6016: 6013: 6012: 6008: 6001: 6000:10.3386/t0312 5996: 5992: 5988: 5983: 5978: 5973: 5969: 5965: 5960: 5956: 5952: 5948: 5944: 5943: 5938: 5933: 5929: 5925: 5921: 5919:9780521848053 5915: 5911: 5907: 5903: 5898: 5894: 5888: 5884: 5883: 5877: 5876: 5872: 5863: 5859: 5854: 5849: 5845: 5841: 5837: 5830: 5827: 5822: 5818: 5814: 5810: 5809: 5801: 5799: 5795: 5790: 5786: 5782: 5778: 5774: 5770: 5769: 5761: 5754: 5751: 5746: 5742: 5738: 5734: 5730: 5726: 5725: 5720: 5716: 5709: 5706: 5701: 5695: 5691: 5690: 5682: 5679: 5674: 5670: 5666: 5662: 5658: 5654: 5653: 5645: 5641: 5634: 5631: 5626: 5622: 5618: 5614: 5609: 5604: 5600: 5596: 5595: 5587: 5584: 5577: 5573: 5570: 5568: 5565: 5563: 5560: 5559: 5555: 5553: 5551: 5547: 5537: 5534: 5531: 5529: 5526: 5525: 5521: 5518: 5515: 5513: 5510: 5509: 5505: 5502: 5499: 5497: 5494: 5493: 5489: 5486: 5483: 5481: 5480: 5477: 5475: 5470: 5466: 5462: 5458: 5454: 5450: 5446: 5442: 5438: 5430: 5428: 5426: 5407: 5399: 5395: 5391: 5386: 5382: 5375: 5367: 5363: 5359: 5354: 5350: 5340: 5332: 5322: 5311: 5310: 5309: 5295: 5275: 5237: 5231: 5229: 5207: 5201: 5190: 5177: 5171: 5161: 5158: 5154: 5148: 5143: 5140: 5137: 5133: 5126: 5124: 5096: 5093: 5071: 5065: 5056: 5053: 5044: 5042: 5023: 5020: 5011: 5008: 5002: 5000: 4992: 4989: 4986: 4980: 4977: 4974: 4971: 4968: 4965: 4956: 4953: 4939: 4938: 4937: 4921: 4911: 4885: 4875: 4849: 4839: 4813: 4803: 4777: 4767: 4738: 4735: 4732: 4728: 4724: 4719: 4716: 4713: 4709: 4705: 4700: 4696: 4681: 4677: 4659: 4649: 4623: 4613: 4589: 4586: 4583: 4561: 4551: 4525: 4515: 4503: 4499: 4481: 4471: 4447: 4444: 4441: 4421: 4418: 4415: 4392: 4389: 4386: 4377: 4374: 4344: 4331: 4328: 4325: 4319: 4316: 4313: 4310: 4307: 4304: 4295: 4292: 4286: 4280: 4277: 4274: 4268: 4265: 4262: 4259: 4256: 4253: 4244: 4241: 4228: 4223: 4205: 4202: 4199: 4193: 4190: 4187: 4184: 4181: 4178: 4169: 4166: 4160: 4154: 4151: 4148: 4142: 4139: 4136: 4133: 4130: 4127: 4118: 4115: 4102: 4100: 4093: 4083: 4069: 4066: 4063: 4057: 4054: 4051: 4048: 4045: 4042: 4033: 4030: 4024: 4018: 4015: 4012: 4006: 4003: 4000: 3997: 3994: 3991: 3982: 3979: 3973: 3971: 3964: 3954: 3940: 3937: 3934: 3928: 3925: 3922: 3919: 3916: 3913: 3904: 3901: 3895: 3889: 3886: 3883: 3877: 3874: 3871: 3868: 3865: 3862: 3853: 3850: 3844: 3842: 3835: 3825: 3811: 3808: 3805: 3799: 3796: 3793: 3790: 3787: 3784: 3775: 3772: 3766: 3764: 3757: 3747: 3732: 3731: 3730: 3728: 3712: 3709: 3706: 3703: 3700: 3677: 3674: 3671: 3648: 3645: 3642: 3622: 3602: 3582: 3579: 3576: 3556: 3536: 3513: 3510: 3504: 3501: 3498: 3490: 3486: 3482: 3479: 3474: 3470: 3466: 3463: 3458: 3454: 3450: 3445: 3441: 3434: 3428: 3421: 3420: 3419: 3395: 3391: 3387: 3382: 3378: 3371: 3363: 3359: 3355: 3350: 3346: 3335: 3319: 3315: 3311: 3306: 3302: 3294: 3278: 3274: 3270: 3265: 3261: 3253: 3251: 3248: 3247: 3230: 3226: 3222: 3217: 3213: 3205: 3189: 3185: 3177: 3161: 3157: 3149: 3135: 3132: 3129: 3122: 3121: 3104: 3100: 3096: 3091: 3087: 3079: 3063: 3059: 3051: 3035: 3031: 3023: 3009: 3006: 3003: 2996: 2995: 2991: 2977: 2974: 2971: 2964: 2950: 2947: 2944: 2937: 2921: 2918: 2914: 2906: 2905: 2902: 2896: 2894: 2892: 2888: 2882: 2879: 2875: 2870: 2868: 2864: 2846: 2842: 2838: 2833: 2829: 2825: 2820: 2816: 2812: 2807: 2803: 2796: 2788: 2785: 2781: 2772: 2756: 2753: 2750: 2730: 2727: 2724: 2702: 2698: 2694: 2689: 2685: 2676: 2672: 2663: 2656: 2654: 2640: 2637: 2632: 2628: 2605: 2602: 2598: 2574: 2566: 2557: 2551: 2546: 2537: 2528: 2520: 2511: 2505: 2500: 2491: 2479: 2467: 2457: 2456: 2455: 2441: 2438: 2433: 2429: 2425: 2420: 2416: 2412: 2407: 2403: 2382: 2379: 2374: 2370: 2349: 2346: 2343: 2323: 2320: 2317: 2309: 2291: 2283: 2279: 2275: 2270: 2266: 2259: 2256: 2248: 2244: 2240: 2235: 2231: 2224: 2218: 2211: 2202: 2193: 2187: 2182: 2173: 2164: 2156: 2147: 2141: 2136: 2127: 2117: 2113: 2103: 2102: 2101: 2099: 2076: 2071: 2062: 2056: 2051: 2042: 2036: 2031: 2022: 2016: 2011: 2002: 1996: 1988: 1984: 1980: 1975: 1971: 1964: 1961: 1953: 1949: 1945: 1940: 1936: 1929: 1922: 1903: 1894: 1888: 1883: 1879: 1875: 1872: 1867: 1863: 1859: 1854: 1850: 1843: 1835: 1826: 1820: 1815: 1811: 1807: 1804: 1799: 1795: 1791: 1786: 1782: 1768: 1763: 1743: 1734: 1728: 1723: 1719: 1715: 1712: 1707: 1703: 1699: 1694: 1690: 1683: 1675: 1666: 1660: 1655: 1651: 1647: 1644: 1639: 1635: 1631: 1626: 1622: 1609: 1602: 1590: 1581: 1575: 1570: 1561: 1552: 1544: 1535: 1529: 1524: 1515: 1507: 1495: 1494: 1493: 1477: 1474: 1470: 1449: 1446: 1443: 1440: 1437: 1417: 1414: 1411: 1408: 1405: 1378: 1372: 1366: 1357: 1351: 1345: 1337: 1334: 1330: 1324: 1319: 1316: 1313: 1309: 1301: 1297: 1293: 1288: 1286: 1279: 1276: 1267: 1257: 1246: 1235: 1229: 1223: 1217: 1208: 1202: 1193: 1187: 1181: 1167: 1156: 1147: 1141: 1135: 1130: 1125: 1122: 1119: 1115: 1107: 1103: 1099: 1094: 1092: 1085: 1082: 1078: 1070: 1065: 1061: 1054: 1045: 1039: 1030: 1024: 1018: 1010: 1006: 1000: 995: 992: 989: 985: 977: 973: 969: 964: 962: 955: 952: 943: 933: 928: 924: 917: 908: 902: 893: 887: 881: 870: 864: 860: 854: 849: 846: 843: 839: 831: 827: 823: 818: 816: 809: 800: 790: 784: 778: 769: 763: 757: 749: 746: 742: 736: 731: 728: 725: 721: 713: 709: 705: 700: 698: 691: 688: 679: 669: 661: 659: 652: 648: 636: 635: 634: 631: 629: 628:residual term 611: 608: 604: 583: 575: 557: 553: 532: 510: 506: 485: 462: 451: 432: 426: 406: 383: 377: 357: 337: 330: 312: 309: 305: 279: 276: 272: 268: 262: 256: 253: 250: 245: 241: 237: 229: 223: 219: 212: 204: 201: 197: 189: 188: 187: 181: 179: 166: 159: 155: 148: 144: 137: 130: 123: 116: 107: 100: 98: 96: 92: 88: 83: 81: 77: 73: 69: 65: 61: 57: 53: 52:control group 49: 45: 41: 37: 33: 29: 25: 21: 5990: 5967: 5946: 5940: 5901: 5881: 5846:(1): 52–71. 5843: 5839: 5829: 5812: 5806: 5772: 5766: 5753: 5728: 5722: 5715:Small, Dylan 5708: 5688: 5681: 5656: 5650: 5633: 5598: 5592: 5586: 5543: 5527: 5511: 5495: 5487:Pennsylvania 5465:Pennsylvania 5445:minimum wage 5434: 5422: 5267: 4363: 3528: 3417: 3249: 2900: 2883: 2877: 2873: 2871: 2674: 2668: 2589: 2306: 2095: 1462:. Note that 1397: 632: 296: 185: 164: 157: 153: 146: 142: 135: 128: 121: 114: 111: 84: 36:econometrics 27: 23: 19: 18: 6056:Subtraction 5949:(1): 5–86. 5731:: 103–130. 5601:(1): 1–19. 5490:Difference 5443:article on 2992:Difference 2657:Assumptions 574:Assumptions 6025:Categories 5578:References 5484:New Jersey 5457:employment 5449:New Jersey 498:by group, 329:individual 95:panel data 5928:120313863 5862:124464636 5745:221702893 5640:Duflo, E. 5603:CiteSeerX 5461:fast food 5392:− 5376:− 5360:− 5326:^ 5323:β 5241:¯ 5211:¯ 5134:∑ 5097:^ 5057:^ 5024:∣ 5012:^ 4969:∣ 4957:^ 4915:^ 4912:β 4879:^ 4876:β 4843:^ 4840:β 4807:^ 4804:β 4771:^ 4768:β 4725:− 4693:Δ 4653:^ 4650:β 4617:^ 4614:β 4555:^ 4552:β 4519:^ 4516:β 4475:^ 4472:β 4393:… 4390:∣ 4387:⋯ 4378:^ 4308:∣ 4296:^ 4287:− 4257:∣ 4245:^ 4229:− 4182:∣ 4170:^ 4161:− 4131:∣ 4119:^ 4087:^ 4084:β 4046:∣ 4034:^ 4025:− 3995:∣ 3983:^ 3958:^ 3955:β 3917:∣ 3905:^ 3896:− 3866:∣ 3854:^ 3829:^ 3826:β 3788:∣ 3776:^ 3751:^ 3748:β 3675:⋅ 3514:ε 3502:⋅ 3487:β 3471:β 3455:β 3442:β 3388:− 3372:− 3356:− 3312:− 3271:− 3223:− 3097:− 2843:λ 2839:− 2830:λ 2826:≠ 2817:λ 2813:− 2804:λ 2782:λ 2699:λ 2695:− 2686:λ 2671:OLS model 2629:γ 2561:¯ 2552:− 2541:¯ 2529:− 2515:¯ 2506:− 2495:¯ 2471:^ 2468:δ 2276:− 2260:δ 2241:− 2225:δ 2197:¯ 2188:− 2177:¯ 2165:− 2151:¯ 2142:− 2131:¯ 2114:⁡ 2066:¯ 2063:ε 2057:− 2046:¯ 2043:ε 2026:¯ 2023:ε 2017:− 2006:¯ 2003:ε 1981:− 1965:δ 1946:− 1930:δ 1898:¯ 1895:ε 1876:δ 1864:λ 1851:γ 1844:− 1830:¯ 1827:ε 1808:δ 1796:λ 1783:γ 1769:− 1738:¯ 1735:ε 1716:δ 1704:λ 1691:γ 1684:− 1670:¯ 1667:ε 1648:δ 1636:λ 1623:γ 1585:¯ 1576:− 1565:¯ 1553:− 1539:¯ 1530:− 1519:¯ 1331:ε 1310:∑ 1271:¯ 1268:ε 1116:∑ 1062:λ 1007:λ 986:∑ 947:¯ 944:λ 925:γ 861:γ 840:∑ 804:¯ 801:γ 722:∑ 683:¯ 605:ε 584:δ 554:λ 507:γ 463:… 433:… 350:and time 273:ε 263:… 254:δ 242:λ 220:γ 5717:(2020). 5556:See also 5512:November 5496:February 4674:. As in 2863:matching 576:below). 178:and Q). 34:used in 5821:2118030 5625:8801460 5459:in the 5441:Krueger 5431:Example 5195:control 4680:Krueger 626:is the 54:' in a 30:) is a 5926:  5916:  5889:  5860:  5819:  5789:470667 5787:  5743:  5696:  5673:470667 5671:  5623:  5605:  5528:Change 5522:−0.14 5506:−2.89 5344:  5338:  5069:  4984:  4500:(see, 4364:where 4323:  4272:  4197:  4146:  4061:  4010:  3932:  3881:  3803:  3595:, and 3529:where 3438:  3432:  3250:Change 2800:  2794:  2483:  2477:  2222:  2216:  1370:  1364:  1343:  1239:  1233:  1221:  1215:  1206:  1200:  1179:  1160:  1154:  1058:  1052:  1043:  1037:  1016:  921:  915:  906:  900:  879:  782:  776:  755:  545:, and 297:where 216:  210:  46:using 5924:S2CID 5858:S2CID 5817:JSTOR 5785:S2CID 5763:(PDF) 5741:S2CID 5669:S2CID 5647:(PDF) 5621:S2CID 5546:Stata 5538:2.75 5535:−2.16 5519:21.17 5516:21.03 5503:23.33 5500:20.44 5166:after 3635:when 3569:when 5914:ISBN 5887:ISBN 5694:ISBN 5532:0.59 5439:and 5437:Card 5435:The 5288:and 4678:and 4676:Card 2889:and 2743:and 2395:and 2096:The 1430:and 134:and 120:and 78:and 38:and 5995:doi 5972:doi 5951:doi 5906:doi 5848:doi 5777:doi 5773:119 5733:doi 5661:doi 5657:119 5613:doi 5447:in 2867:ATE 163:to 152:to 82:). 26:or 24:DID 6027:: 5993:. 5989:. 5970:. 5966:. 5947:47 5945:. 5939:. 5922:. 5912:. 5856:. 5844:16 5842:. 5838:. 5813:84 5811:. 5797:^ 5783:. 5771:. 5765:. 5739:. 5727:. 5721:. 5667:. 5655:. 5649:. 5619:. 5611:. 5599:72 5597:. 5552:. 5400:22 5387:12 5368:21 5355:11 5247:12 3396:22 3383:12 3364:21 3351:11 3320:12 3307:11 3279:22 3266:21 3231:21 3218:11 3190:11 3162:21 3105:22 3092:12 3064:12 3036:22 2847:11 2834:12 2821:21 2808:22 2653:. 2567:22 2547:21 2521:12 2501:11 2434:21 2421:12 2408:11 2375:22 2284:21 2271:22 2249:12 2236:11 2203:22 2183:21 2157:12 2137:11 2072:21 2052:22 2032:12 2012:11 1989:21 1976:22 1954:12 1941:11 1904:22 1884:22 1836:21 1816:21 1744:12 1724:12 1676:11 1656:11 1591:22 1571:21 1545:12 1525:11 630:. 370:, 74:, 28:DD 6003:. 5997:: 5980:. 5974:: 5957:. 5953:: 5930:. 5908:: 5895:. 5864:. 5850:: 5823:. 5791:. 5779:: 5747:. 5735:: 5729:6 5702:. 5675:. 5663:: 5627:. 5615:: 5408:. 5405:) 5396:y 5383:y 5379:( 5373:) 5364:y 5351:y 5347:( 5341:= 5333:3 5296:S 5276:T 5238:y 5232:= 5208:y 5202:= 5191:n 5186:) 5178:i 5175:( 5172:I 5162:, 5159:i 5155:y 5149:n 5144:1 5141:= 5138:i 5127:= 5111:) 5103:( 5094:P 5086:) 5083:) 5075:( 5072:I 5066:y 5063:( 5054:E 5045:= 5032:) 5021:y 5018:( 5009:E 5003:= 4996:) 4993:0 4990:= 4987:S 4981:, 4978:1 4975:= 4972:T 4966:y 4963:( 4954:E 4922:3 4886:2 4850:1 4814:3 4778:1 4744:) 4739:0 4736:, 4733:i 4729:Y 4720:1 4717:, 4714:i 4710:Y 4706:= 4701:i 4697:Y 4690:( 4660:2 4624:1 4590:1 4587:= 4584:T 4562:2 4526:1 4482:1 4448:0 4445:= 4442:S 4422:1 4419:= 4416:T 4396:) 4384:( 4375:E 4345:, 4340:] 4335:) 4332:0 4329:= 4326:S 4320:, 4317:0 4314:= 4311:T 4305:y 4302:( 4293:E 4284:) 4281:0 4278:= 4275:S 4269:, 4266:1 4263:= 4260:T 4254:y 4251:( 4242:E 4234:[ 4214:] 4209:) 4206:1 4203:= 4200:S 4194:, 4191:0 4188:= 4185:T 4179:y 4176:( 4167:E 4158:) 4155:1 4152:= 4149:S 4143:, 4140:1 4137:= 4134:T 4128:y 4125:( 4116:E 4108:[ 4103:= 4094:3 4073:) 4070:0 4067:= 4064:S 4058:, 4055:0 4052:= 4049:T 4043:y 4040:( 4031:E 4022:) 4019:1 4016:= 4013:S 4007:, 4004:0 4001:= 3998:T 3992:y 3989:( 3980:E 3974:= 3965:2 3944:) 3941:0 3938:= 3935:S 3929:, 3926:0 3923:= 3920:T 3914:y 3911:( 3902:E 3893:) 3890:0 3887:= 3884:S 3878:, 3875:1 3872:= 3869:T 3863:y 3860:( 3851:E 3845:= 3836:1 3815:) 3812:0 3809:= 3806:S 3800:, 3797:0 3794:= 3791:T 3785:y 3782:( 3773:E 3767:= 3758:0 3713:1 3710:= 3707:T 3704:= 3701:S 3681:) 3678:S 3672:T 3669:( 3649:2 3646:= 3643:s 3623:1 3603:S 3583:2 3580:= 3577:t 3557:1 3537:T 3511:+ 3508:) 3505:S 3499:T 3496:( 3491:3 3483:+ 3480:S 3475:2 3467:+ 3464:T 3459:1 3451:+ 3446:0 3435:= 3429:y 3401:) 3392:y 3379:y 3375:( 3369:) 3360:y 3347:y 3343:( 3316:y 3303:y 3275:y 3262:y 3227:y 3214:y 3186:y 3158:y 3136:1 3133:= 3130:t 3101:y 3088:y 3060:y 3032:y 3010:2 3007:= 3004:t 2978:1 2975:= 2972:s 2951:2 2948:= 2945:s 2922:t 2919:s 2915:y 2878:y 2874:y 2797:: 2789:t 2786:s 2757:2 2754:= 2751:s 2731:1 2728:= 2725:s 2703:1 2690:2 2641:0 2638:= 2633:1 2606:t 2603:s 2599:D 2575:, 2572:) 2558:y 2538:y 2532:( 2526:) 2512:y 2492:y 2486:( 2480:= 2442:0 2439:= 2430:D 2426:= 2417:D 2413:= 2404:D 2383:1 2380:= 2371:D 2350:2 2347:= 2344:t 2324:2 2321:= 2318:s 2292:. 2289:) 2280:D 2267:D 2263:( 2257:+ 2254:) 2245:D 2232:D 2228:( 2219:= 2212:] 2208:) 2194:y 2174:y 2168:( 2162:) 2148:y 2128:y 2122:( 2118:[ 2111:E 2077:. 2037:+ 1997:+ 1994:) 1985:D 1972:D 1968:( 1962:+ 1959:) 1950:D 1937:D 1933:( 1923:= 1914:] 1909:) 1889:+ 1880:D 1873:+ 1868:2 1860:+ 1855:2 1847:( 1841:) 1821:+ 1812:D 1805:+ 1800:1 1792:+ 1787:2 1779:( 1774:[ 1754:] 1749:) 1729:+ 1720:D 1713:+ 1708:2 1700:+ 1695:1 1687:( 1681:) 1661:+ 1652:D 1645:+ 1640:1 1632:+ 1627:1 1619:( 1614:[ 1603:= 1596:) 1582:y 1562:y 1556:( 1550:) 1536:y 1516:y 1510:( 1478:t 1475:s 1471:D 1450:2 1447:, 1444:1 1441:= 1438:t 1418:2 1415:, 1412:1 1409:= 1406:s 1379:, 1376:) 1373:s 1367:= 1361:) 1358:i 1355:( 1352:s 1349:( 1346:I 1338:t 1335:i 1325:n 1320:1 1317:= 1314:i 1302:s 1298:n 1294:1 1289:= 1280:t 1277:s 1258:, 1255:) 1247:t 1236:= 1230:s 1227:( 1224:I 1218:= 1212:) 1209:s 1203:= 1197:) 1194:i 1191:( 1188:s 1185:( 1182:I 1176:) 1168:t 1157:= 1151:) 1148:i 1145:( 1142:s 1139:( 1136:I 1131:n 1126:1 1123:= 1120:i 1108:s 1104:n 1100:1 1095:= 1086:t 1083:s 1079:D 1071:, 1066:t 1055:= 1049:) 1046:s 1040:= 1034:) 1031:i 1028:( 1025:s 1022:( 1019:I 1011:t 1001:n 996:1 993:= 990:i 978:s 974:n 970:1 965:= 956:t 953:s 934:, 929:s 918:= 912:) 909:s 903:= 897:) 894:i 891:( 888:s 885:( 882:I 874:) 871:i 868:( 865:s 855:n 850:1 847:= 844:i 832:s 828:n 824:1 819:= 810:s 791:, 788:) 785:s 779:= 773:) 770:i 767:( 764:s 761:( 758:I 750:t 747:i 743:y 737:n 732:1 729:= 726:i 714:s 710:n 706:1 701:= 692:t 689:s 680:y 670:s 662:= 653:s 649:n 612:t 609:i 558:t 533:s 511:s 486:Y 466:) 460:( 436:) 430:( 427:I 407:i 387:) 384:i 381:( 378:s 358:t 338:i 313:t 310:i 306:y 280:t 277:i 269:+ 266:) 260:( 257:I 251:+ 246:t 238:+ 233:) 230:i 227:( 224:s 213:= 205:t 202:i 198:y 176:2 172:2 168:2 165:S 161:1 158:S 154:Q 150:1 147:P 143:Q 139:2 136:S 132:2 129:P 125:1 122:S 118:1 115:P 22:(

Index

statistical technique
econometrics
quantitative research
experimental research design
observational study data
control group
natural experiment
independent variable
dependent variable
selection bias
mean regression
reverse causality
omitted variable bias
time-series estimate
cross-section estimate
panel data

individual
dummy variable
Assumptions
residual term
strict exogeneity assumption
Without loss of generality

OLS model
formal definition
matching
ATE
autocorrelation
Ashenfelter dips

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