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  • ESTAT PTRENDS with cross-sectional data without two pre-intervention time periods

    Hi to everyone,

    I am doing my computations for a study using DD estimation. After I carried our my difference-in-difference estimation with the didregress command, I run the estat trendplots and the estat ptrends. When I run the last command, the software displays me the following error "estat ptrend requires at least two pre-intervention time periods". I think that's given by the nature of my data (attached). Is there anything I can can do to solve this problem?
    Plus, since the estat ptrends command was not working, I tried another way to show - at least graphically - that the parallel trends assumption was somehow holding. And I wrote:

    collapse (mean) stfeco, by(essround country)
    twoway line stfeco essround if country==1 || line stfeco essround if country==0


    But this does not really show the before-after situation I am expecting.
    How do I obtain something similar to the picture below?

    Thank you in advance.

    Attached Files
    Last edited by Albino Bruno; 11 Dec 2022, 17:11.

  • #2
    Your time variable essround is binary, and so it appears that you have only two time points, one before and one after your event of interest. Thus, with just a single point per time period, a trend cannot be plotted (or tested for). As an aside, have a look at the standard errors of your didregress estimate, they are implausibly small. Remember that the cluster-robust variance estimator does not perform well if the number of clusters is small.

    Hope this helps,
    Joerg

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