Difference-in-difference (DiD) estimation is a popular method of causal inference that allows estimation of the average impact of a treatment on individuals.

Although DiD can be estimated on repeated cross-sectional data, most research in econometrics has concentrated on estimation of DiD models in a panel data setting, and EViews offers built in tools for estimating DiD models only within panel workfiles.

This chapter will introduce estimation of the DiD model using the common two-way fixed-effects (TWFE) method, as well as post-estimation diagnostics of the TWFE model, such as those by Goodman-Bacon (2021), Callaway and Sant’Anna (2021), and Borusyak, Jaravel, and Spiess (2021).