Dear StataList Users,
I am using a Difference in Difference Model but I am facing a challenge in establishing the parallel trends assumption. What I have usually seen is that parallel trends assumption is established by plotting a trendline that visually shows the Treatment Control Groups to be parallel in the pre-treatment time period. I am wondering how to plot these trend lines accurately after considering the controls.
For example, if there is a dataset on house selling prices over many counties and one is looking at the effect of the launch of an online portal (exogenous launch in several counties) on the selling price as the treatment. Then in such a case, I am looking to establish parallel trends assumption by showing that in the pre-treatment period the selling prices of houses in control and treatment groups are parallel (after controlling for observables such as square footage, county crime rate, etc., Busy street (0/1), etc. ).
What would be the best way to formally establish the parallel trends assumption in such a case? In other words, how to account for the controls?
Related Posts with Parallel Trends DID
how to calculate the moving average for a variableDear all I am trying to calculate the average bond maturity over the preceding three months as an i…
Ask experts for help:how to set the prior of regression coefficients that follow dirichlet distribution in bayes modelHello, statistics experts, I have a question that troubles me for long time. My purpose to estimate …
EFA-Factor AnalysisHello, I have survey data where five main factors and each factor has a set of questions. As we kno…
Intuition on why Fixed-effects models depend on there being variation within the unit of analysis.I am new to econometrics and tried to find the answer on google, but couldn't find any. I've learned…
Doubt with daily dates and x-axisGreetings, I am working with a database and I have two doubts: 1) is there any way that in the x-a…
Subscribe to:
Post Comments (Atom)
0 Response to Parallel Trends DID
Post a Comment