context("Equivalence between DID procedures with Repeated Cross section") test_that("RC estimators coincide with drdid function", { # Let us generate some data #----------------------------------------------------------------------------- # DGP 1 used by Sant'Anna and Zhao (2020) (RC case) # Sample size n <- 500 # pscore index (strength of common support) Xsi.ps <- .75 # Proportion in each period lambda <- 0.5 # Researcher always observes Z #----------------------------------------------------------------------------- # Mean and Std deviation of Z's without truncation mean.z1 <- exp(0.25/2) sd.z1 <- sqrt((exp(0.25) - 1) * exp(0.25)) mean.z2 <- 10 sd.z2 <- 0.54164 mean.z3 <- 0.21887 sd.z3 <- 0.04453 mean.z4 <- 402 sd.z4 <- 56.63891 #----------------------------------------------------------------------------- set.seed(1234) # Gen covariates x1 <- stats::rnorm(n, mean = 0, sd = 1) x2 <- stats::rnorm(n, mean = 0, sd = 1) x3 <- stats::rnorm(n, mean = 0, sd = 1) x4 <- stats::rnorm(n, mean = 0, sd = 1) z1 <- exp(x1/2) z2 <- x2/(1 + exp(x1)) + 10 z3 <- (x1 * x3/25 + 0.6)^3 z4 <- (x1 + x4 + 20)^2 z1 <- (z1 - mean.z1)/sd.z1 z2 <- (z2 - mean.z2)/sd.z2 z3 <- (z3 - mean.z3)/sd.z3 z4 <- (z4 - mean.z4)/sd.z4 x <- cbind(x1, x2, x3, x4) z <- cbind(z1, z2, z3, z4) #----------------------------------------------------------------------------- # Gen treatment groups # Propensity score pi <- stats::plogis(Xsi.ps * (- z1 + 0.5 * z2 - 0.25 * z3 - 0.1 * z4)) d <- as.numeric(runif(n) <= pi) #----------------------------------------------------------------------------- # Generate aux indexes for the potential outcomes index.lin <- 210 + 27.4*z1 + 13.7*(z2 + z3 + z4) index.unobs.het <- d * (index.lin) index.att <- 0 #This is the key for consistency of outcome regression index.trend <- 210 + 27.4*z1 + 13.7*(z2 + z3 + z4) #v is the unobserved heterogeneity v <- stats::rnorm(n, mean = index.unobs.het, sd = 1) #Gen realized outcome at time 0 y0 <- index.lin + v + stats::rnorm(n) # gen outcomes at time 1 # First let's generate potential outcomes: y_1_potential y10 <- index.lin + v + stats::rnorm(n, mean = 0, sd = 1) +#This is the baseline index.trend #this is for the trend based on X y11 <- index.lin + v + stats::rnorm(n, mean = 0, sd = 1) +#This is the baseline index.trend + #this is for the trend based on X index.att # This is the treatment effects # Gen realized outcome at time 1 y1 <- d * y11 + (1 - d) * y10 # Generate "T" post <- as.numeric(stats::runif(n) <= lambda) # observed outcome y <- post * y1 + (1 - post) * y0 #----------------------------------------------------------------------------- #Gen id id <- 1:n #----------------------------------------------------------------------------- # Put in a long data frame dta_long <- as.data.frame(cbind(id = id, y = y, post = post, d = d, x1 = z1, x2= z2, x3 = z3, x4 = z4)) dta_long <- dta_long[order(dta_long$id),] #----------------------------------------------------------------------------- #----------------------------------------------------------------------------- # Use the different estimators to compute ATT #----------------------------------------------------------------------------- # Panel Data using long data format or.did_rc <- ordid(yname="y", tname = "post", idname = "id", dname = "d", xformla= ~ x1 + x2 + x3 + x4, data = dta_long, panel= FALSE, boot = FALSE) std_ipw.did_rc <- ipwdid(yname="y", tname = "post", idname = "id", dname = "d", xformla= ~ x1 + x2 + x3 + x4, data = dta_long, panel= FALSE, boot = FALSE) ipw.did_rc <- ipwdid(yname="y", tname = "post", idname = "id", dname = "d", xformla= ~ x1 + x2 + x3 + x4, data = dta_long, normalized = FALSE, panel= FALSE, boot = FALSE) dr_trad.did_rc <- drdid(yname="y", tname = "post", idname = "id", dname = "d", estMethod = "trad", xformla= ~ x1 + x2 + x3 + x4, data = dta_long, panel= FALSE, boot = FALSE) dr_imp.did_rc <- drdid(yname="y", tname = "post", idname = "id", dname = "d", estMethod = "imp", xformla= ~ x1 + x2 + x3 + x4, data = dta_long, panel= FALSE, boot = FALSE) #----------------------------------------------------------------------------- # Now with the "explicit" call or.did_rc2 <- reg_did_rc(dta_long$y, dta_long$post, dta_long$d, dta_long[,5:8], boot = FALSE) std_ipw.did_rc2 <- std_ipw_did_rc(dta_long$y, dta_long$post, dta_long$d, dta_long[,5:8], boot = FALSE) ipw.did_rc2 <- ipw_did_rc(dta_long$y, dta_long$post, dta_long$d, dta_long[,5:8], boot = FALSE) dr_trad.did_rc2 <- drdid_rc(dta_long$y, dta_long$post, dta_long$d, dta_long[,5:8], boot = FALSE) dr_imp.did_rc2 <- drdid_imp_rc(dta_long$y, dta_long$post, dta_long$d, dta_long[,5:8], boot = FALSE) #----------------------------------------------------------------------------- # Check if all point estimates are equal expect_equal(dr_imp.did_rc$ATT, dr_imp.did_rc2$ATT) expect_equal(dr_trad.did_rc$ATT, dr_trad.did_rc2$ATT) expect_equal(std_ipw.did_rc$ATT, std_ipw.did_rc2$ATT) expect_equal(ipw.did_rc$ATT, ipw.did_rc2$ATT) expect_equal(or.did_rc$ATT, or.did_rc2$ATT) # Check if all standard errors are equal expect_equal(dr_imp.did_rc$se, dr_imp.did_rc2$se) expect_equal(dr_trad.did_rc$se, dr_trad.did_rc2$se) expect_equal(std_ipw.did_rc$se, std_ipw.did_rc2$se) expect_equal(ipw.did_rc$se, ipw.did_rc2$se) expect_equal(or.did_rc$se, or.did_rc2$se) })