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JMSLab / xtevent

Stata package -xtevent-
MIT License
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Review helpfile #210

Closed jorpppp closed 2 months ago

jorpppp commented 3 months ago

The command underwent many changes over the last two weeks so a check to the helpfile is in order to make sure everything is clear.

jorpppp commented 3 months ago

The explanation on the help file about the different methods to extrapolate the trend is a bit incomplete. It does not explain that the coefficients on the negative event-times will differ between the two methods and have a different interpretation. We should explain this better in the section on trend in the help file.

This discussion will be helpful to improve the explanation:

In the regression approach, when we include the trend we omit the event-time coefficients used to estimate it from the regression. So if event-time -2 is used to fit the trend, at event-time -2, y = fixed effects + controls + trend + error.

Instead, in the GMM aproach, we adjust the coefficients to be trend plus adjusted coefficient, so at event-time -2, y = fixed effects + controls + trend + adjusted coefficient + error. That is, this approach does not force the adjusted coefficient to be 0. In the regression approach, the adjusted coefficient is loaded in the error. Both approaches return the same slope for the trend though.

jorpppp commented 2 months ago

I made some changes to the overall organization of xtevent 's helpfile, and I also added info on the interpretation of the coefficients with different trend methods as discussed above.

jorpppp commented 2 months ago

Summary: In this issue we reviewed the helpfiles and modified for clarity.

Thread continues in #213