sigma_hathat_c

Calculating the constrained variance of the residuals for the Boostrap approaches in the EquiTrends Maximum Equivalence Testing procedure, 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

sigma_hathat_c function

<dl><dt>parameter</dt>
<dd>The constrained coefficients.</dd>
<dt>x</dt>
<dd>The double demeaned independent variables.</dd>
<dt>y</dt>
<dd>The double demeaned dependent variable.</dd>
<dt>ID</dt>
<dd>The ID variable.</dd>
<dt>time</dt>
<dd>The time variable.</dd></dl>

Arguments

Calculating the constrained variance of the residuals for the Boostrap approaches in the EquiTrends Maximum Equivalence Testing procedure, according to Dette &amp; Schumann (2024). — sigma_hathat_c

<dl>

<dt>parameter</dt>
<dd>The constrained coefficients.</dd>


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


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


<dt>ID</dt>
<dd>The ID variable.</dd>


<dt>time</dt>
<dd>The time variable.</dd>

</dl>

Calculating the constrained variance of the residuals for the Boostrap approaches in the EquiTrends Maximum Equivalence Testing procedure, according to Dette &amp; Schumann (2024).

sigma_hathat_c: Calculating the constrained variance of the residuals for the Boostrap approaches in the EquiTrends Maximum Equivalence Testing procedure, according to Dette & Schumann (2024).

Description

Usage

Value

Arguments

References