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Difference-in-differences:
more than meets the eye
Laura A. Hatfield, PhD
Associate Professor
Department of Health Care Policy
Harvard Medical School
December 11, 2019
Experimentation is everywhere
Health care produces lots of data
Electronic
health records
Billing claims
This invites “quasi-experimental” analyses
A methodologist’s view on diff-in-diff
 Widely applicable
 Strong causal assumptions
 Our research
 Matching
 Regression
 Testing assumptions
 Related designs
Did hospital global budgets work?
Difference-in-differences
Maryland
Virginia
Diff-in-diff effect
“
”
The control group’s
untreated outcome change
stands in for
the treated group’s
untreated outcome change.
Observed
Counterfactual
The counterfactual assumption, visually
 Often (misleadingly) called “the parallel trends assumption”
Maryland
Virginia
Pre Post
Spending
without
global
budgets
From counterfactual to treatment effect
Maryland
Virginia
Treatment effect
Ideas for making counterfactuals more plausible
Match on observed variables
Test for parallel trends
Adjust using regression
Fit more complicated models
Match on observed variables
“Beware
regression to
the mean.”
Jamie Daw
Match on observed variables
Match on observed variables
Matching from different
populations creates bias
Matching from same
population ameliorates bias
“Specify
regression
models
thoughtfully.”
Adjust using regression models
Bret Zeldow
Time-varying
Independent
of treatment
Related to
treatment
Time-invariant
Time-varying
𝑋𝑡
𝑋𝑡*time
Time-invariant
Time-varying 𝑋*time
None
Time-invariant
Time-invariant
Time-varying
None
𝑋*time
Covariate 𝑋 Effect of 𝑋 on 𝑌0 Adjustment
Adjust using regression models
Align regression model with
confounding
Test for parallel trends
“Don’t use
conventional
null hypothesis
tests.”
Alyssa Bilinski
Test for parallel trends
Examine changes under
alternative assumptions
Fit more complicated models
“Consider
alternative
causal
assumptions.”
Carrie Fry
Fit more complicated models
Level
change
Intercept
change
Slope
change
Diff-in-Diff Comparative Interrupted Time
Series
Fit more complicated models
Modeling changes imply
new causal assumptions
Matching from different populations creates bias
Align regression model with confounding relationship
Examine changes under alternative assumptions
Modeling changes imply new causal assumptions
@laura_tasticdiff.HealthPolicyDataScience.org
diff.HealthPolicyDataScience.org @laura_tastic

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Causal Inference Opening Workshop - Difference-in-differences: more than meets the eye - Laura Hatfield, December 11, 2019

Hinweis der Redaktion

  1. Providers are experimenting with new ways of delivering care, such as telemedicine and hospital at home. Payers are experimenting with new ways of paying for care, such as price transparency and accountable care organizations.
  2. The health care delivery and payment systems throw off a huge quantity of “data exhaust” in the ordinary course of business.
  3. In 2016, Maryland put all the hospitals in the state under a new hospital global budget program