Difference-in-Differences: No Anticipation with Parallel Trends (with a simulation and equations)
In a Mixtape Mailbag recently, I talked through what happens if you have parallel trends and SUTVA but not “no anticipation”. What is “no anticipation”? No anticipation simply means that the baseline period is equal to Y(0) not Y(1). In other words, the baseline is not treated.
Mixtape Mailbag #7: What Happens in Difference-in-Differences if Parallel Trends is satisfied but No Anticipation is Violated?
Every Monday, so long as I have a question submitted, I try to answer one readers’ question. The questions are usually something about causal inference and oftentimes very practical, like a project they’re working on. If you are someone out there curiosity about something too,
A reader had written about that, and it was nice because I had actually n…
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