I have a panel dataset for songs which can be remixed at different time periods. I am interested in the question of whether derivative products create a upstream competition for their parent products. Here is my baseline regression:
Yit = α + β1 × Treatment*postit + γi + δt + ϵit, where Yit is number of daily streams, γi is song and δt is time fixed-effects.
I also want to run a placebo test by adding leads and lags, similar to Autor (2003). As far as I understood, these leads and lags are the interactions of the treatment variable with time dummies, rather than actual leads and lags. Currently, I am using reghdfe command rather than xtreg,fe as my dataset is huge and I need to add time fixed effects. Here is the code that I use when I run difference in differences analysis:
Here is how my data looks like:
How could I run something similar to what Author(2003) has done?
Yit = α + β1 × Treatment*postit + γi + δt + ϵit, where Yit is number of daily streams, γi is song and δt is time fixed-effects.
I also want to run a placebo test by adding leads and lags, similar to Autor (2003). As far as I understood, these leads and lags are the interactions of the treatment variable with time dummies, rather than actual leads and lags. Currently, I am using reghdfe command rather than xtreg,fe as my dataset is huge and I need to add time fixed effects. Here is the code that I use when I run difference in differences analysis:
Code:
reghdfe log_daily_streams treatment, absorb(song_id day) vce(cluster song_id)
Code:
song_id n_streams day treatment 1 30 May01 0 1 34 May02 0 1 32 May03 0 1 32 May04 0 1 56 May05 1 1 67 May06 1 1 45 May07 1 2 23 May01 0 2 25 May02 0 2 27 May03 0 2 27 May04 0 2 28 May05 0 2 23 May06 0 2 23 May07 0