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st: Differences-in-differences

From   Bhavani Shankar <>
Subject   st: Differences-in-differences
Date   Wed, 27 Oct 2010 11:22:10 +0100

Hi folks,

I'd be grateful for some advice, being a novice in econometric policy
evaluation. I have the following policy evaluation problem. I am
seeking to estimate the effects of a policy restricting advertising of
junk food to children in the UK that started in Jan 2008. I have
household food expenditure data for cross-sectional waves 2007 and
2008, ie before and after. Problem is, there is no geographically
defined control group available for D-in-D, as the program was rolled
out to the whole country. One potential strategy I have been
considering is as follows: use families with children as the treatment
group, and families without children as the control group, with the
dependent variable specifed as junk food expenditure per adult
equivalent. Do D-in-D estimation on this basis.

My question is simple: does this sound reasonable, or is there
something obviously wrong with this train of thought? Sorry if the
question sounds naive. I'd really appreciate any insights/comments!

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