Constructing a More Closely Matched Control Group in a Difference-in-Differences Analysis: Its Effect on History Interacting with Group Bias

Basu, P and Small, D S (2020) Constructing a More Closely Matched Control Group in a Difference-in-Differences Analysis: Its Effect on History Interacting with Group Bias. Observational Studies. (Submitted)

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Abstract

Difference–in–differences analysis with a control group that differs considerably from a treated group is vulnerable to bias from historical events that have different effects on the groups. Constructing a more closely matched control group by matching a subset of the overall control group to the treated group may result in less bias. We study this phenomenon in simulation studies. We study the effect of mountaintop removal mining (MRM)on mortality using a difference–in–differences analysis that makes use of the increase in MRM following the 1990 Clean Air Act Amendments. For a difference–in–differences analysis of the effect of MRM on mortality, we constructed a more closely matched controlgroup and found a 95% confidence interval

Affiliation:	Indian School of Business
ISB Creiators:	ISB Creators ORCiD Basu, P UNSPECIFIED
Item Type:	Article
Uncontrolled Keywords:	Group Bias, Difference-in-Differences Analysis
Subjects:	Organization Behavior
Depositing User:	Gurusrinivasan K
Date Deposited:	20 Oct 2020 08:40
Last Modified:	20 Oct 2020 08:40
URI:	http://eprints.exchange.isb.edu/id/eprint/1386
Publisher URL:	https://arxiv.org/abs/2009.06935
Publisher OA policy:	https://arxiv.org/abs/2009.06935
Related URLs:	Google Scholar Link to full-text (other repositories)

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