domains / families / research / event-studies

event-studies

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Use this skill whenever the user wants to conduct an event study, create event study plots, test for parallel trends, implement difference-in-differences designs, or work with any panel data estimation that involves pre/post treatment comparisons. Trigger on phrases like "event study", "parallel trends", "pre-trends", "dynamic treatment effects", "leads and lags", "TWFE", "two-way fixed effects", "staggered adoption", "staggered treatment", "difference-in-differences", "DiD", "Sun and Abraham", "Callaway and Sant'Anna", "de Chaisemartin", "Borusyak", "did_multiplegt", "fixest", "did2s", "bacon decomposition", or any reference to plotting coefficients around a treatment event. Also trigger when the user uploads panel data and wants to estimate treatment effects with variation in treatment timing. All code is in R.

When to use

• Create event study plots (coefficient plots around a treatment event)
• Test for parallel pre-trends in a difference-in-differences design
• Estimate dynamic treatment effects
• Work with staggered treatment adoption (units treated at different times)
• Implement any of the modern DiD estimators (Callaway & Sant'Anna, Sun & Abraham, etc.)
• Diagnose problems with TWFE under treatment effect heterogeneity

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