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  • Difference in Differences (DiD)

    Hello All,

    I am a beginner. I would like to ask for your support to interpret exactly DiD indicator. I run DiD to check the difference impact between treatment group and control group when a new policy enter force and get the result DiD indicator negative. I have done some steps as bellows:
    gen time variable
    gen group variable
    gen DiD = time variable x group variable.
    xtreg Dependent variable DiD Independent variables, fe
    In my model, there are 5 independent variables.
    My outcome after run DiD test, DiD indicator is negative. So in this case, how can I interpret this result?
    When I run xtreg with each group, the result of impact new policy on performance is positive, why DiD indicator when I run DiD test can be negative? Can I calculate DiD indicator for each group with all 5 independent variables then subtract 2 results DiD to get difference and compare with DiD indicator (I run with both treatment and control group)? If yes, how can I calculate? I am confusing. I am looking forward to hearing from you.

    Thank you
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