# Difference In Differences Analysis Go back to the [[Econometrics Main Page]] Compare change in place A with a change vs no change in place B - before and after. Requires a control group. City A has taxes change, City B has no tax change. Want to figure out what vaariables were impacted by tax change in City A. City B is control group. ![illustration of isolation tax change-before](https://i.imgur.com/bmLTsM8.png) ![Illustration of isolation tax change-after](https://i.imgur.com/sS4Gr6H.png)