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BACONDECOMP: Stata module to perform a Bacon decomposition of difference-in-differences estimation
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2019
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EngineeringTime PeriodStatistical FoundationTreatment EffectBacon DecompositionCausal InferenceStatistical AnalysisStata ModuleData SciencePublic HealthEstimation TheoryStatisticsEstimation StatisticFunctional Data AnalysisDifference-in-differences EstimationTreatment TimingEconometricsTime-varying ConfoundingStatistical Inference
bacondecomp shows a Bacon decomposition of difference-in-differences estimation with variation in treatment timing. The two-way fixed effects DD model is a weighted average of all possible two-group/two period DD estimators. The command generates a scatterplot of 2x2 difference-in-difference estimates and their associated weights. The data must be xtset and the variable list must include an outcome as the first item, and a treatment that can only turn from zero to one during the time period examined as its second item.