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st: Stata implementation of difference-in-differences with binary outcomes


From   C Engelbrecht <cngelbrecht@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   st: Stata implementation of difference-in-differences with binary outcomes
Date   Fri, 16 Apr 2010 10:19:07 -0400

I found some discussions of DID methods in the Statalist archive, such
as this one
http://www.stata.com/statalist/archive/2005-06/msg00738.html
Basically we just need to generate an interaction term between two
dummy vars: treatment and post. Here the outcome variable is a
continuous one.

But what if the outcome variable is binary? How should I model the
difference of two latent variables, as is the case in Probit / Logit?
The usual DID is based on differencing Y across these groups, but what
should we do now that we only have a latent Y*?

Thanks in advance for your help!
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