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DiD · Paper Detail

←All Readings ←DiD Methodology

📄 This paper

⚡TL;DR 🧩Setup 📐Main results 🛠️For practice 🧭In the lit 📥PDF

Literature Readings · DiD · Paper Detail

Difference-in-Differences Designs: A Practitioner's Guide

Andrew Baker · Brantly Callaway · Scott Cunningham · Andrew Goodman-Bacon · Pedro H. C. Sant'Anna

JEL 2026 (forthcoming)MethodologyPractitioner GuideSynthesis

📥 Read it

Local PDF (1.3 MB)arXiv 2503.13323AEA SiteGitHub replication

⚡ TL;DR

The definitive 2026 synthesis of the post-2020 DiD revolution. Five of the field's principal methodologists pool the contributions of Goodman-Bacon (2021), Callaway-Sant'Anna (2021), Sun-Abraham (2021), Borusyak-Jaravel-Spiess (2024), de Chaisemartin-D'Haultfœuille (2020, 2023, 2024), Wooldridge (2023), Roth (2022), Rambachan-Roth (2023), Roth-Sant'Anna (2023), and others into one organizing framework. Likely to supersede Roth-Sant'Anna-Bilinski-Poe (2023) as the canonical reference for graduate teaching and applied work.

🧩 Setup & motivation

The paper organizes the modern DiD literature around three central questions: (1) What is the target parameter? — ATT, group-time ATT, dynamic event-time ATT, continuous-treatment dose-response, or aggregations thereof; (2) What are the identifying assumptions? — parallel trends, no anticipation, SUTVA, possibly conditional on covariates; (3) What estimator achieves the target under the assumptions? — and what diagnostics defend it.

The framework starts from the canonical 2×2 DiD and extends to: covariate adjustment (outcome regression, IPW, doubly robust); weights and aggregation; multiple periods; staggered treatments; continuous treatments; multi-shock designs; sensitivity analysis. Throughout, the authors emphasize matching the estimator to the target parameter — not picking an estimator based on what's popular.

📐 Main results

The unified framework

Two-by-two DiD identifies the ATT under parallel trends; staggered DiD requires either heterogeneity-robust estimators (CS, SA, BJS, dC-dH, Wooldridge ETWFE) OR strong homogeneity assumptions on TWFE — there is no free lunch. The paper systematizes when each estimator is appropriate, what target parameter it identifies, and what assumptions it requires.

Sensitivity analysis as default

Rambachan-Roth (2023) honest sensitivity bounds, Roth-Sant'Anna (2023) functional-form robustness, and Ghanem-Sant'Anna-Wüthrich (2025) selection-mechanism diagnostics are treated as part of standard practice, not optional robustness exercises. The framework integrates sensitivity bounds directly into the identification stage.

Software ecosystem

The paper provides a comprehensive table mapping each estimator to its R / Stata implementation: fixest::sunab, did::att_gt, didimputation::did_imputation, DIDmultiplegtDYN, etwfe::etwfe, HonestDiD, fwildclusterboot. Replication code for every example is on the GitHub repository.

Recommended workflow (paraphrased)

  1. Articulate target parameter (ATT? Group-time ATT? Dynamic event-time ATT?)
  2. State identifying assumptions explicitly
  3. Choose estimator that targets that parameter under those assumptions
  4. Run baseline + 3–4 robust estimators; report all
  5. Report Rambachan-Roth sensitivity bounds for headline coefficient
  6. Report Roth-Sant'Anna functional-form alternatives (levels vs logs)
  7. Honest discussion of remaining limitations

🛠️ Implications for practice

  • This paper will likely become the canonical reference cited in DiD papers' methodology sections starting in 2026–2027.
  • Graduate students should read this before applying DiD; faculty should adapt the framework's recommended workflow as the new default.
  • If your paper does not pass the workflow checks here, expect reviewers to ask why.
  • Pairs naturally with the Implementation Toolkit on this site (R code per step, package list, FAQ).

🧭 Where this sits in the broader DiD literature

Successor synthesis to Roth-Sant'Anna-Bilinski-Poe (2023) J Econometrics "What's Trending in DiD?", which itself synthesized the post-2020 methodology revolution. BCCGS 2026 will likely become the senior reference. Builds on every major paper from 2020 onward; integrates Ghanem-Sant'Anna-Wüthrich (2025) selection-mechanism perspective.

📥 Read the paper

  • Local PDF (1.3 MB) — instant, no external request
  • arXiv 2503.13323
  • AEA Site
  • GitHub replication