High Quality Content by WIKIPEDIA articles! Difference in differences (DD) is a nonexperimental technique used in econometrics that measures the effect of a treatment at a given period in time. It is often used to measure the change induced by a particular treatment or event, though may be subject to certain biases (mean reversion bias, etc). The basic premise of 'diff-in-diffs' is to examine the effect of some sort of treatment by comparing the treatment group after treatment both to the treatment group before treatment and to some other control group. Naively, you might consider simply looking at the treatment group before and after treatment to try to deduce the effect of the treatment. However, a lot of other things were surely going on at the exact same time as the treatment. The diff-in-diffs method uses a control group to subtract out other changes at the same time, assuming that these other changers were identical between the treatment and control groups.

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