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st: DiD estimation versus fixed effects when T>2

From   "Riggieri, Alison C" <>
Subject   st: DiD estimation versus fixed effects when T>2
Date   Wed, 4 Mar 2009 10:00:20 -0500 (EST)

I am attempting to take panel data (5 years, for all 50 states +DC) and determine a DiD estimation.  I have four different treatment variables, all dummy variables.  

My question is this:  my adviser told me to to run "xtreg y x treatment 2002 2003 2004 2005, fe" to get a DiD estimation, but I'm not sure that is correct.  He told me to just add dummy variables to the fixed effects regression.

Does that compute the DiD estimation or do I have to interact the treatment and the year?  

thanks in advance,


PhD Student
School of Public Policy
Georgia Institute of Technology
Atlanta, GA
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