Events

[CSSL@CUHK Webinar] Factorial Difference-in-Differences

Date:

11 Dec 2025

Time:

9:30 am to 11:00 am (UTC+8,HKT)

Venue:

Webinar

Speaker(s):

Prof. Yiqing Xu

Biography of Speaker:

Professor Yiqing Xu is an Assistant Professor in the Department of Political Science at Stanford University, and a faculty affiliate at the Stanford Causal Science Center and the Stanford Center on China’s Economy and Institutions. He received his B.A. in Economics from Fudan University, M.A. in Economics from the China Center for Economic Research at Peking University, and Ph.D. in Political Science from the Massachusetts Institute of Technology.

His primary research areas are causal inference and comparative politics. In recent years, his work has focused on developing and applying causal inference methods for panel data. Professor Xu has received multiple awards from the Society for Political Methodology, including the Best Dissertation Award, the Political Analysis Best Paper Award (twice), the Political Analysis Editors’ Choice (twice), and the Best Statistical Software Award (twice). In 2024, he was named the Society’s Emerging Scholar, an honor recognizing exceptional contributions within ten years of receiving the Ph.D.

Synopsis of Lecture:

We formulate factorial difference-in-differences (FDID) as a research design that extends the canonical difference-in-differences (DID) to settings without clean controls. Such situations often arise when researchers exploit cross-sectional variation in a baseline factor and temporal variation in an event affecting all units. In these applications, the exact estimand is often unspecified and justification for using the DID estimator is unclear. We formalize FDID by characterizing its data structure, target parameters, and identifying assumptions. Framing FDID as a factorial design with two factors—the baseline factor G and the exposure level Z, we define effect modification and causal moderation as the associative and causal effects of G on the effect of Z. Under standard DID assumptions, including no anticipation and parallel trends, the DID estimator identifies effect modification but not causal moderation. To identify the latter, we propose an additional factorial parallel trends assumption. We also show that the canonical DID is a special case of FDID under an exclusion restriction. We extend the framework to conditionally valid assumptions and clarify regression-based implementations. We then discuss extensions to repeated cross-sectional data and continuous G. We illustrate the approach with an empirical example on the role of social capital in famine relief in China.

Remarks: