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>.
Package details |
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Author | Ties Bos [aut, cre], Martin Schumann [ctb] |
Maintainer | Ties Bos <tc.bos@student.maastrichtuniversity.nl> |
License | MIT + file LICENSE |
Version | 1.0.0 |
URL | https://github.com/TiesBos/EquiTrends |
Package repository | View on CRAN |
Installation |
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