Fundamentals of Python for Financial Econometrics

Chapter 29: Difference-in-Differences and Event Studies

How can policy evaluation use changes over time when randomized assignment is unavailable?

Loading notebook...treated and comparison groupsparallel trendstwo-period DIDregression implementation

Notebook lab guide

Related dataset

Ceteris Lab teaching sample

Estimated time

25 to 40 min

Packages

pandas, numpy, statsmodels, patsy

Expected output

A regression or inference table with coefficients, uncertainty, and short interpretation notes.

Learning goals

Common errors

File not found: check that wage_sample.csv is installed or use the course data folder.
Package import error: use the browser notebook first, then download for local Jupyter if your local packages differ.
Column name error: compare your variable names with the dataset variables listed for this notebook.

Dataset path helper

import pandas as pd

df = pd.read_csv("/data/wage_sample.csv")
df.head()

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