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  • Running a placebo test

    Hi, I was wondering if I have a dataset for individuals in many countries. I am trying to analyse the implication of the policy in those countries. I am running a triple DiD to estimate the implication of the policy on the mental health of individuals after the policy was introduced for the selected countries.

    For this I know I don't need to rely on the parallel trend assumption as I only have two time periods. However, I could then run a placebo test where I can change the pre-treatment year. However, I am confused about how I would go about this.

    I have two waves, one wave for before the policy which includes the years 2014 and 2015. Then the second wave is for after the policy which includes the years 2018 and 2019. I created these waves myself based on the fact the individuals where interviewed in either of the 2 years within the two waves. So how would I then run a placebo test?

    Thank you
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