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y 0 1dB 2dE 3dB dE 0d2

  • 1d2 dB 2d2 dE 3d2 dB dE u

The coefficient of interest is 3, the coefficient on the triple interaction term, d2 dB dE. The OLS

̂ estimate 3 can be expressed as follows:

̂

  • 3 ȳB,E,2 ȳB,E,1ȳA,E,2 ȳ

A,E,1

ȳB,N,2

ȳB,N,1

where the A subscript means the state not implementing the policy and the N subscript represents the non-elderly. This is the difference-in-difference-in-differences (DDD) estimate. Can add covariates to either the DD or DDD analysis to (hopefully) control for compositional changes. Can use multiple time periods and groups.

5

(3)

(4)

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