diff_diff.placebo_group_test#

diff_diff.placebo_group_test(data, outcome, time, unit, fake_treated_units, post_periods=None, alpha=0.05, **estimator_kwargs)[source]

Test for differential trends among never-treated units.

Assigns some never-treated units as “fake treated” and estimates a DiD model using only never-treated data. A significant effect suggests heterogeneous trends in the control group.

Parameters:
  • data (pd.DataFrame) – Panel data.

  • outcome (str) – Outcome variable column.

  • time (str) – Time period column.

  • unit (str) – Unit identifier column.

  • fake_treated_units (list) – List of control unit IDs to designate as “fake treated”.

  • post_periods (list, optional) – List of post-treatment period values.

  • alpha (float, default=0.05) – Significance level.

  • **estimator_kwargs – Arguments passed to DifferenceInDifferences.

Returns:

Results of the fake group placebo test.

Return type:

PlaceboTestResults