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 (A)</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 (B)</p> Signup and view all the answers

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

<p>Ȳ t - Ȳ c (B)</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 (D)</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 (C)</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 (B)</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 (B)</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 (D)</p> Signup and view all the answers

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

<p>Common trends assumption (D)</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 (D)</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 (B)</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 (C)</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 (C)</p> Signup and view all the answers
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