I'm running a DID model with multiple timer periods and continuous treatment. I currently run the traditional Parallel Trends Assumption presented in Callaway, Goodman-Bacon & Sant'Anna (2021):
E[Yt(0) − Yt−1(0)|D = d] = E[Yt(0) − Yt−1(0)|D = 0]
However, the paper explains how under continuous treatment, stronger parallel trend assumptions are needed. The "Strong Parallel Trends Assumption" is presented as:
E[Yt(d) − Yt−1(0)] = E[Yt(d) − Yt−1(0)|D = d]
Does anyone know if Stata currently has a command that can run this stronger test? The paper writes how "pre-trend tests commonly used to detect violations of parallel trends cannot distinguish between “standard” and “strong” parallel trends". Has this changed since the paper has been published?
Thanks in advance!
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