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IZA
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Synthetic Difference-in-Differences Estimation
by
Damian Clarke, Daniel Pailaņir, Susan Athey, Guido W. Imbens
(January 2023)
forthcoming in: Stata Journal, 2024
Abstract:
In this paper, we describe a computational implementation of the Synthetic difference-in-differences (SDID) estimator of Arkhangelsky et al. (2021) for Stata. Synthetic difference-in-differences can be used in a wide class of circumstances where treatment effects on some particular policy or event are desired, and repeated observations on treated and untreated units are available over time. We lay out the theory underlying SDID, both when there is a single treatment adoption date and when adoption is staggered over time, and discuss estimation and inference in each of these cases. We introduce the sdid command which implements these methods in Stata, and provide a number of examples of use, discussing estimation, inference, and visualization of results.
Text: See Discussion Paper No. 15907 
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