Good day everyone,
I have a general question about the design of my DiD approach. Is it possible that I extract my treatment group from my control group, but at the same time keep it in the control group? This is an economic research study where my control group would represent "the entire market". I want to measure whether companies that performed poorly in the last three years before the treatment (basis of the seperation into the treatment group) perform better after the treatment than "the market".
The return of all companies remains stable after the treatment and my treatment group performs significantly better.
However, if I actually separate the treatment group from the control group, then my control group (which now has a very high return due to the separation) no longer performs consistently after the treatment, but worse, because at the time after the treatment, for the "first time", poorly performing companies were not sorted out.
I hope I was able to explain my problem well despite the difficulties.
Thanks in advance!
Lenny
I have a general question about the design of my DiD approach. Is it possible that I extract my treatment group from my control group, but at the same time keep it in the control group? This is an economic research study where my control group would represent "the entire market". I want to measure whether companies that performed poorly in the last three years before the treatment (basis of the seperation into the treatment group) perform better after the treatment than "the market".
The return of all companies remains stable after the treatment and my treatment group performs significantly better.
However, if I actually separate the treatment group from the control group, then my control group (which now has a very high return due to the separation) no longer performs consistently after the treatment, but worse, because at the time after the treatment, for the "first time", poorly performing companies were not sorted out.
I hope I was able to explain my problem well despite the difficulties.
Thanks in advance!
Lenny
