Double-Robust Estimation in Difference-in-Differences with an Application to Traffic Safety Evaluation

Abstract: Difference-in-differences (DID) is a widely used approach for drawing causal inference from observational panel data. Two common estimation strategies for DID are outcome regression and propensity score weighting. In this paper, motivated by a real application in traffic safety research, we propose a new double-robust DID estimator that hybridizes regression and propensity score weighting. We particularly focus on the case of discrete outcomes. We show that the proposed double-robust estimator possesses the desirable large-sample robustness property. We conduct a simulation study to examine its finite-sample performance and compare with alternative methods. Our empirical results from a Pennsylvania Department of Transportation data suggest that rumble strips are marginally effective in reducing vehicle crashes.