sigma_hathat_c {EquiTrends}R Documentation

Calculating the constrained variance of the residuals for the Boostrap approaches in the EquiTrends Maximum Equivalence Testing procedure, according to Dette & Schumann (2024).

Description

Calculating the constrained variance of the residuals for the Boostrap approaches in the EquiTrends Maximum Equivalence Testing procedure, according to Dette & Schumann (2024).

Usage

sigma_hathat_c(parameter, x, y, ID, time)

Arguments

parameter

The constrained coefficients.

x

The double demeaned independent variables.

y

The double demeaned dependent variable.

ID

The ID variable.

time

The time variable.

Value

The estimated constrained variance of the residuals.

References

Dette, H., & Schumann, M. (2024). "Testing for Equivalence of Pre-Trends in Difference-in-Differences Estimation." Journal of Business & Economic Statistics, 1–13. DOI: doi:10.1080/07350015.2024.2308121


[Package EquiTrends version 1.0.0 Index]