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Inference with “Difference in Differences” with a Small Number of Policy Changes

Inference with “Difference in Differences” with a Small Number of Policy Changes

In difference-in-differences applications, identification of the key parameter often arises from changes in policy by a small number of groups. In contrast, typical inference assumes that the number of groups changing policy is large. We present an alternative inference approach for a small (finite) number of policy changers, using information …