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The Triple Difference Estimator

Olden, Andreas; Møen, Jarle
Working paper
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URI
https://hdl.handle.net/11250/2652016
Date
2020-04-22
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  • Discussion papers (FOR) [556]
Abstract
Triple difference has become a widely used estimator in empirical work. A close reading of articles in top economics journals reveals that the use of the estimator to a large extent rests on intuition. The identifying assumptions are neither formally derived nor generally agreed on. We give a complete presentation of the triple difference estimator, and show that even though the estimator can be computed as the difference between two difference-in-differences estimators, it does not require two parallel trend assumptions to have a causal interpretation. The reason is that the difference between two biased difference-in-differences estimators will be unbiased as long as the bias is the same in both estimators. This requires only one parallel trend assumption to hold.
Publisher
FOR
Series
Discussion paper;1/20

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