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  • Testing parallel trends with xtdidregress vs reg dep treated##i.year

    Dear Stata users,
    I want to study the effects of protests on populism. I have a balanced panel and the following election-years: 1995, 2002, 2007, 2012, 2017, 2022. All treated municipalities were treated at the same time in 2022, 704 treated units, 33497 not-treated units. I want to estimate the effect in 2022.
    What I did:
    Code:
    xtdidregress (populism)(protest), group(municipality) time(year)
    estat ptrends
    estat trendplots
    Results. Coefficient: 1.583 s.e. 0.151
    I obtain the following figure:
    Click image for larger version

Name:	Graph.png
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ID:	1716234

    Looking to the figure in the right-side, it seems that I have parallel trends. However, if I do:
    Code:
    reg populism treated##ibn.year if year<2022, vce(cluster municipality) hascons
    
    Linear regression                               Number of obs     =    171,005
                                                    F(10, 34200)      =   36914.58
                                                    Prob > F          =     0.0000
                                                    R-squared         =     0.2854
                                                    Root MSE          =     4.5094
    
                              (Std. err. adjusted for 34,201 clusters in municipality)
    ------------------------------------------------------------------------------
                 |               Robust
        populism | Coefficient  std. err.      t    P>|t|     [95% conf. interval]
    -------------+----------------------------------------------------------------
       1.treated |   .5693092   .1393846     4.08   0.000     .2961107    .8425078
                 |
            year |
           1995  |   10.79962   .0278197   388.20   0.000     10.74509    10.85415
           2002  |   11.68494   .0233048   501.40   0.000     11.63926    11.73062
           2007  |   6.820931   .0169692   401.96   0.000     6.787671    6.854191
           2012  |   10.72906   .0236022   454.58   0.000      10.6828    10.77533
           2017  |    15.7514   .0301276   522.82   0.000     15.69235    15.81045
                 |
    treated#year |
         1 1995  |  -.2740706   .1340293    -2.04   0.041    -.5367725   -.0113687
         1 2002  |  -.9777467    .120084    -8.14   0.000    -1.213115    -.742378
         1 2007  |  -.5563054   .1234835    -4.51   0.000    -.7983371   -.3142737
         1 2012  |  -.8389415   .0809102   -10.37   0.000    -.9975281   -.6803549
         1 2017  |          0  (omitted)
    ------------------------------------------------------------------------------
    it does not seem that I have parallel trends at all. I understand that xtdidregress and this last regression are doing different things, but which results are more relevant for testing parallel trends?
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