PPHA311 Asai–Koustas–Wright Common Trends Assumption Quiz
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Questions and Answers

What is needed to test the common trend assumption in Double Differences (DD)?

  • At least four pre-treatment periods
  • At least one pre-treatment period
  • At least two pre-treatment periods (correct)
  • At least three pre-treatment periods

    • In a formal test for Common Trend in DD, what does Ygt represent?

  • Time period
  • Treatment group (correct)
  • Dummy variable
  • Control group

    • Which variable is included in the formal test for Common Trend to capture the interaction between treatment and time post-treatment?

  • REATg
  • DD (correct)
  • TX
  • YEARjt

    • What does the F-test in Common Trend testing aim to assess?

    <p>Whether pre-treatment trends are parallel</p> Signup and view all the answers

    Which of the following is a requirement for a formal test of Common Trend in Double Differences analysis?

    <p>At least two time periods before treatment</p> Signup and view all the answers

    What is the difference estimator used in Double Differences (DD)?

    <p>Ȳ t - Ȳ c</p> Signup and view all the answers

    What is the main purpose of Double Differences (DD) analysis?

    <p>To estimate the change in the treatment group assuming no treatment was given</p> Signup and view all the answers

    Why is it important for Double Differences (DD) to assume common trends between treatment and control groups?

    <p>To avoid bias in the estimation of treatment effects</p> Signup and view all the answers

    What happens if a factor affects the treated and control group differently across time periods in a Double Differences (DD) analysis?

    <p>It violates the common trend assumption</p> Signup and view all the answers

    What assumption is violated if ugt is correlated with T reatg × P ostt in a Double Differences (DD) analysis?

    <p>Common trend assumption</p> Signup and view all the answers

    What are omitted variables in the context of natural experiments?

    <p>Events that occur between pre-intervention and post-intervention observations that can explain the results</p> Signup and view all the answers

    Which assumption is commonly made in natural experiment designs to exclude omitted interactions?

    <p>Common trends assumption</p> Signup and view all the answers

    What does 'mismeasurement' refer to in the context of natural experiments?

    <p>Changes in definitions or survey methods leading to inaccurate outcomes</p> Signup and view all the answers

    How does selection impact the validity of a natural experiment?

    <p>It leads to a correlation between assignment and outcomes without treatment</p> Signup and view all the answers

    What is attrition in the context of natural experiments?

    <p>Differential loss of respondents from treatment and comparison groups</p> Signup and view all the answers

    How can the validity of a natural experiment be improved according to further evidence on comparability?

    <p>By examining the comparability of treatment and comparison groups</p> Signup and view all the answers

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