Subgroup Difference in Differences to Identify Effect Modification Without a Control Group
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Suppose it is of interest to characterize effect heterogeneity of an intervention across levels of a baseline covariate using only pre- and post- intervention outcome measurements from those who received the intervention, i.e. with no control group. For example, a researcher concerned with equity may wish to ascertain whether a minority group benefited less from an intervention than the majority group. We introduce the `subgroup parallel trends' assumption that the counterfactual untreated outcomes in each subgroup of interest follow parallel trends pre- and post- intervention. Under the subgroup parallel trends assumption, it is straightforward to show that a simple `subgroup difference in differences' (SDiD) expression (i.e., the average pre/post outcome difference in one subgroup subtracted by the average pre/post outcome difference in the other subgroup) identifies the difference between the intervention's effects in the two subgroups. This difference in effects across subgroups is identified even though the conditional effects in each subgroup are not. The subgroup parallel trends assumption is not stronger than the standard parallel trends assumption across treatment groups when a control group is available, and there are circumstances where it is more plausible. Thus, when effect modification by a baseline covariate is of interest, researchers might consider SDiD whether or not a control group is available.
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