I am attempting a parallel trends test with panel data (annual) from 1990-2018. My cross-section identifier is c_id (identifying countries) and I have two countries. I am trying to attempt a similar method as this following post : https://www.statalist.org/forums/for...did-estimation
My equation for my DiD analysis is as follows:
Exports = β0 + β1y2011 + β2country + β3y2011*Country + ε
where y2011 = 1 for observations from 2011 onwards, 0 otherwise
Country = 1 for UK, 0 for Australia
To conduct this test, would I therefore need the following code?
Does this essentially interact the Country dummy variable for each year dummy and then to check whether the assumption holds, do you compare the p values and check to see if they're insignificant?
My equation for my DiD analysis is as follows:
Exports = β0 + β1y2011 + β2country + β3y2011*Country + ε
where y2011 = 1 for observations from 2011 onwards, 0 otherwise
Country = 1 for UK, 0 for Australia
To conduct this test, would I therefore need the following code?
Code:
xtset c_id Year xtreg totalexportsA i.Year##i.Country, fe
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