boot_optimization_function

<code>boot_optimization_function</code> solves the optimization problem to find the restricted placebo coefficients, according to Dette &amp; Schumann (2024).

Testing for parallel trends is crucial in the Difference-in-Differences framework. To this end, this package performs equivalence testing in the context of Difference-in-Differences estimation. It allows users to test if pre-treatment trends in the treated group are “equivalent” to those in the control group. Here, “equivalence” means that rejection of the null hypothesis implies that a function of the pre-treatment placebo effects (maximum absolute, average or root mean squared value) does not exceed a pre-specified threshold below which trend differences are considered negligible. The package is based on the theory developed in Dette & Schumann (2024) <doi:10.1080/07350015.2024.2308121>.

Ties Bos

EquiTrends

Equivalence Testing for Pre-Trends in Difference-in-Differences
Designs

Martin Schumann

boot_optimization_function function

<dl><dt>x</dt>
<dd>The double demeaned independent variables.</dd>
<dt>y</dt>
<dd>The double demeaned dependent variable.</dd>
<dt>no_placebos</dt>
<dd>The number of placebo coefficients.</dd>
<dt>equiv_threshold</dt>
<dd>The equivalence threshold for the test.</dd>
<dt>start_val</dt>
<dd>The starting values for the optimization.</dd></dl>

Arguments

Finding the restricted placebo coefficients for the maximum equivalence test based on the bootstrap approaches — boot_optimization_function

<dl>

<dt>x</dt>
<dd>The double demeaned independent variables.</dd>


<dt>y</dt>
<dd>The double demeaned dependent variable.</dd>


<dt>no_placebos</dt>
<dd>The number of placebo coefficients.</dd>


<dt>equiv_threshold</dt>
<dd>The equivalence threshold for the test.</dd>


<dt>start_val</dt>
<dd>The starting values for the optimization.</dd>

</dl>

boot_optimization_function: Finding the restricted placebo coefficients for the maximum equivalence test based on the bootstrap approaches

Description

Usage

Value

Arguments

References