Library · Causal inference & statistics

What Difference-in-Differences Design got wrong, from 48 theses

Summary written by a model from the records below: The records document methodological obstacles and rejection criteria encountered when applying difference-in-differences designs across empirical evaluations. Most methodological failures stem from violations of core identifying assumptions such as parallel pre-trends, staggered adoption biases, unobserved confounding, and spillover effects. These records come from graduate theses, 2021 to 2026, each labeled with its degree where the repository states it, and each links to its thesis. They were extracted by language models reading the full text, so treat each as a lead to read, not a verdict.

48
theses
18
institutions
50
failure records
5
failure modes

Plus 9 problems the authors left open, listed at the end.

Failure modes, by theses reporting them

Select a mode to jump to its records.

Pre-treatment parallel trends assumptions were violated across treated and control groups
22
22 theses · 7 institutions · 23 records
Staggered rollout and two-way fixed effects produced biased comparisons with negative weights
11
11 theses · 10 institutions · 11 records
Omitted time-varying confounders and selection bias distorted treatment effect estimates
7
7 theses · 7 institutions · 8 records
Bounded outcomes, variable scaling, and aggregation obscured or misspecified treatment effects
4
4 theses · 4 institutions · 4 records
Interventions violated SUTVA or lacked valid untreated comparison groups
4
4 theses · 4 institutions · 4 records

Staggered rollout and two-way fixed effects produced biased comparisons with negative weights

11 theses · 10 institutions

Conventional two-way fixed effects estimators generated substantial econometric bias by using already-treated cohorts as controls in settings with dynamic treatment effects. Authors rejected standard staggered models or found that estimated effects disappeared after replacing them with robust estimators or stacked cohort designs.

Tried and failed

staggered difference-in-differences with robust estimators applied to evaluating corporate investment policy impacts. Outcome: no signal. Reason: treatment effects disappeared after correcting for staggered adoption bias and outlier winsorization

Essays on the Impact and Effectiveness of Share Repurchase Regulations · Harvard · PhD

Considered and rejected

Considered and rejected: Rejected canonical Difference-in-Differences models with period and group fixed effects due to biased estimates arising from 'forbidden' comparisons of already-treated units under heterogeneous treatment effects.

Beyond Trade Losses: Sanctions and the Resilience of Productive Economies · Texas Tech · PhD

Considered and rejected

Considered and rejected: Rejected standard two-way fixed effects (TWFE) difference-in-differences due to treatment effect heterogeneity across adoption cohorts and negative weighting issues.

Essays on applied labour economics: personality traits, artificial intelligence and formalisation policies · Nottingham · PhD

Tried and failed

two-way fixed effects difference-in-differences estimation applied to staggered policy adoption evaluation. Reason: pervasive negative weights on early-treated cohorts and failure of treatment homogeneity assumptions

Three Essays on the Economics of Agricultural Production Behavior, Renewable Natural Resources, and Welfare Dynamics · Cornell · PhD

Considered and rejected

Considered and rejected: Rejected standard Two-Way Fixed Effects (TWFE) with staggered treatment due to time-varying treatment effects leading to biased comparisons with already-treated units, adopting stacked difference-in-differences instead

Essays on infrastructure and urban development in developing countries · Boston University · PhD

Considered and rejected

Considered and rejected: Decided against using traditional Difference-in-Differences estimators because they average exposure-outcome associations over time and can be biased when associations vary as policy generosities change.

Structural Responses to Structural Inequities: Evaluating the Potential of Earned Income Tax Credit (EITC) Policies as Tools for Addressing Social Inequities in Mental Distress · University of Washington · PhD

Considered and rejected

Considered and rejected: Rejected standard two-way fixed-effects (TWFE) estimators in favor of stacked difference-in-differences to avoid bias from heterogeneous/staggered treatment timing.

Impacts of State Abortion Restrictions on Mental Health and Healthcare · Johns Hopkins · PhD

Considered and rejected

Considered and rejected: Rejected staggered difference-in-differences as the primary empirical design due to econometric concerns regarding staggered DiD estimates, relegating it to a robustness check.

Do Private Tax Disclosures Affect the Quality of Public Financial Reporting? · University of Oregon · PhD

Considered and rejected

Considered and rejected: Rejected staggered difference-in-differences designs due to econometric bias from heterogeneous treatment timing, opting for canonical 2x2 DD models

Manifestations of the Positive Death Movement in America: Medical Aid In Dying, Voluntarily Stopping Eating & Drinking, and End-Of-Life Doulas · Georgia Tech · PhD

Considered and rejected

Considered and rejected: Rejected standard two-way fixed-effects (TWFE) difference-in-differences models due to bias caused by dynamic/staggered treatment timing and negative weights comparing early-treated to late-treated units.

Three Essays On Economics of Marriage Law · Texas Tech · PhD

Considered and rejected

Considered and rejected: Rejected standard Two-Way Fixed Effects (TWFE) staggered difference-in-differences due to contamination and bias from heterogeneous cohort treatment effects, adopting the Wooldridge (2021) two-way Mundlak regression instead.

Essays on Foreign Direct Investment and International Trade · University College Dublin · PhD

Omitted time-varying confounders and selection bias distorted treatment effect estimates

7 theses · 7 institutions

Models lacking adequate covariate adjustments, fixed effects, or selection controls produced counterintuitive coefficient signs and spurious long-term negative estimates. Unmeasured environmental shocks, concurrent disruptions, anticipatory behavior, and non-absorbing treatment states severely compromised causal identification.

Considered and rejected

Considered and rejected: Rejected using unweighted difference-in-differences as the sole model without testing multiple group propensity score weighting to address baseline covariate imbalance.

Indirect Effects of Financial Incentives on Physician Behavior in Perinatal Care · Johns Hopkins · PhD

Tried and failed

staggered difference-in-differences with robust estimators applied to longitudinal policy evaluation of student performance. Reason: produced spurious long-term negative effects likely driven by unobserved time-varying confounders rather than treatment

Art-tendance: The Effect of Creative Learning on Student Outcomes · UT Austin

Tried and failed

difference-in-differences without covariate adjustment applied to continuous spatial policy spillover estimation. Reason: unadjusted confounding produced counterintuitive positive treatment effect estimates at low dose ranges

Causal Inference Methods To Evaluate Health Policies With Spillover · Penn · PhD

Tried and failed

staggered difference-in-differences using localized shock applied to environmental quality impact on student performance. Outcome: no signal. Reason: Confounding negative effects from psychological trauma and commuting disruptions masked any environmental benefits.

Three Essays in Applied Microeconomics · Georgia Tech · PhD

Tried and failed

difference-in-differences on panel data applied to international trade policy interventions. Reason: unmeasured confounding and anticipatory effects yielded counterintuitive negative causal estimates

Identification and Estimation of Policy-relevant Causal Effects from Observational Data · EPFL · PhD

Considered and rejected

Considered and rejected: Rejected relying solely on OLS and Difference-in-Differences with inconsequential units approach due to non-random intermediate small cities and time-varying omitted environmental confounders (e.g., pollution, noise).

Essays on Health and Transportation Economics · University at Buffalo · PhD

Tried and failed

matched difference-in-differences estimation applied to school-level education intervention effects. Reason: unobserved group-by-cohort selection bias caused spurious negative point estimates

Building Communities of Upward Mobility · Harvard · PhD

Considered and rejected

Considered and rejected: Rejected relying on standard matched difference-in-differences estimators because treatment was not strictly an absorbing state across cohorts and schools suffered negative selection shocks.

Building Communities of Upward Mobility · Harvard · PhD

Bounded outcomes, variable scaling, and aggregation obscured or misspecified treatment effects

4 theses · 4 institutions

Applying linear difference-in-differences to discrete or bounded measures generated out-of-bounds counterfactual probabilities and conflated treatment with mean reversion. In other settings, pooling distinct locations obscured localized impacts, or treatment effects disappeared under alternative variable scaling and normalization choices.

Considered and rejected

Considered and rejected: Rejected standard Difference-in-Differences (DiD) / parallel trends for discrete and bounded outcomes because it confounds baseline mean reversion with treatment effects and can produce counterfactual probabilities outside the [0, 1] range

PROGRAM EVALUATION OF TREATMENT EFFECT HETEROGENEITY: THEORY AND APPLICATIONS · Penn · PhD

Tried and failed

Difference-in-differences with alternative variable scaling applied to Corporate expenditure and investment ratios. Outcome: no signal. Reason: Treatment effects lost statistical significance when scaling expenditures by revenue instead of lagged total assets

The Causal Effects of Mandatory Quarterly Earnings Guidance on Corporate Information Environment and Corporate Short-Termism · MIT · PhD

Considered and rejected

Considered and rejected: Rejected Difference-in-Differences (DiD) because it constrains predictor effects to be constant over time rather than accounting for weighted variable changes.

A Sequential Explanatory Mixed Methods Study Measuring the Effects of Implementing the Bayh-Dole in International Contexts · Texas Tech · PhD

Tried and failed

pooled difference-in-differences estimator applied to downstream property price changes. Outcome: no signal. Reason: pooling all sites obscured heterogeneous treatment effects across locations

Essays on environmental economics · UT Austin · PhD

Interventions violated SUTVA or lacked valid untreated comparison groups

4 theses · 4 institutions

Spatial spillovers and broad regulatory scope violated stable unit treatment value assumptions across market boundaries. In addition, universal policy implementations and pervasive rollouts left no clean, contemporaneous untreated units to serve as valid control groups.

Considered and rejected

Considered and rejected: Rejected standard Difference-in-Differences for evaluating the 2017 German corporate tax reform because all German corporate startups were simultaneously affected, adopting Synthetic Control instead.

Essays on the Finance of Startups · Tübingen · PhD

Considered and rejected

Considered and rejected: Rejected difference-in-differences/regression discontinuity due to lack of a clean exogenous shock affecting only MAIs without impacting all patenting firms.

The value of analytics innovations · Iowa State · PhD

Considered and rejected

Considered and rejected: Rejected standard Difference-in-Differences (DiD) in favor of pooled OLS / SAR because the SUTVA assumption failed due to spatial spillovers and shifting net-exporter status.

Spatial Dimensions of Economic Modeling: Interdisciplinary Approaches to Labor, Trade, and Networks · Georgia Tech · PhD

Considered and rejected

Considered and rejected: Standard difference-in-differences design between colonias with and without service was rejected due to small sample sizes and gradual rollout across all counties.

Municipal infrastructure and public policy : program evaluation of three case studies along the U.S.-Mexico border · UT Austin · PhD

Left open by the authors

Problems the authors named and did not get to.

Left open

Estimate the causal effect of continuous per-dollar minimum wage increases on health outcomes using continuous-treatment difference-in-differences methods. Blocker: None

Impact of Social Policies on Health · Harvard · PhD

Left open

Modify difference-in-differences minimum wage empirical designs to incorporate cross-state worker migration leakages. Blocker: None

How the Price System Works: Evidence from Supply Chains and Price Controls · Harvard · PhD

Left open

Estimate difference-in-differences regressions interacting minimum wage increases with PNTR tariff exposure shocks to measure contemporaneous buffering effects on local crime rates. Blocker: None

Three Essays on the Impacts of Trade Liberalization · Georgia Tech · PhD

Left open

Estimate compulsory schooling law impacts on child labor, marriage age, bride prices, sibling allocations, and birth spacing using difference-in-differences. Blocker: None

Essays on China’s Economic Development · Cornell · PhD

Left open

Test parallel trends assumptions in ACA Medicaid expansion difference-in-differences models using linked individual microdata rather than aggregate mortality data. Blocker: Requires access to restricted administrative individual microdata (e.g., linked Census/vital statistics records).

Essays in health economics · UT Austin · PhD

Left open

Estimate the causal effect of carbon pricing on provincial industrial greenhouse gas emissions and emissions intensity using staggered Difference-in-Differences. Blocker: None

The causal effect of carbon pricing on industrial energy consumption in Canada · University of Manitoba · Master's

Left open

Perform difference-in-differences analysis testing parallel trends and health trajectory selection on subsequent IFLS survey waves. Blocker: None

The Hidden Costs of Mobility: Changing Patterns of Labor Migration and Health Implications for Left Behind Families in Indonesia. · Cornell · PhD

Left open

Evaluate longer-term earnings outcomes beyond age 20 using matched difference-in-differences on longitudinal administrative wage and education records. Blocker: Requires access to restricted administrative longitudinal earnings data linked to student records.

Essays on health economics and public policy · UT Austin · PhD

Left open

Evaluate whether Science Based Targets participation affects downside beta, drawdowns, and return volatility using matched pair difference-in-differences regression on S&P 500 firms. Blocker: None

Innovation Through a Net Zero Economy and the Impact to an Investors Bottom Line · Harvard · Master's

Who has worked on this

Authors of the public theses cited on this page, most-cited first.

Checking a claim in this area?

We can run the same search on any method or claim. If nothing turns up, we will say so, and that proves nothing on its own.