The American Bar Association Antitrust Law Section has published the article “Difference-in-Differences Renaissance and Implications for Antitrust Economic Analyses” by Director Jéssica Dutra. Recent advancements in econometrics have shown that the classic formulation of a difference-in-differences (DiD) – Two-way Fixed Effects – although fairly intuitive, may yield a miscalculated magnitude of the policy effect size, potentially going as far as providing an estimate in the opposite direction of the actual effect. In her article, Jéssica shows that by choosing the appropriate specification under the new developments of DiD, antitrust experts can ensure that antitrust enforcement remains grounded in sound economic principles and evidence-based reasoning.

Read the article here (ABA membership required):