Misclassification in Difference-in-differences Models (opens in new tab)

arXiv:2207.11890v3 Announce Type: replace-cross Abstract: The difference-in-differences (DID) design is one of the most popular methods used in empirical economics research. However, there is almost no work examining what the DID method identifies in the presence of a misclassified treatment variable. This paper studies the identification of treatment effects in DID designs when the treatment is misclassified. Misclassification arises in various ways, including when the timing of a policy int...