Difference-in-Differences(cont) o Aregression framework using time and treatment dummy variables can calculate this difference-in-difference as well e Consider the model: yit=Bo t B,afterit+B treatment, o+ B,treatment after t o The estimated B3 will be the difference-in- differences in the group means Economics 20- Prof anderson 5Economics 20 - Prof. Anderson 5 Difference-in-Differences (cont) A regression framework using time and treatment dummy variables can calculate this difference-in-difference as well Consider the model: yit = b0 + b1 treatmentit + b2afterit + b3 treatmentit*afterit+ uit The estimated b3 will be the difference-in￾differences in the group means