Estimates the DGP parameters used in the placebo studies in Sections 3 and 5 of the synthetic difference in differences paper. Described there in Section 3.1.1.

Estimates the DGP parameters used in the placebo studies in Sections 3 and 5 of the synthetic difference in differences paper. Described there in Section 3.1.1.

Usage

estimate_dgp(Y, assignment_vector, rank)

Arguments

Y,

an NxT matrix of outcomes

assignment_vector,

an Nx1 vector of treatment assignments

rank,

the rank of the estimated signal component L

Value

a list with elements F, M, Sigma, pi as described in Section 3.1.1 and an element ar_coef with the AR(2) model coefficients underlying the covariance Sigma

Examples

# \donttest{
# Estimate DGP parameters from California Prop 99 data
data(california_prop99)
setup <- panel.matrices(california_prop99)
dgp_params <- estimate_dgp(setup$Y, setup$Y[, ncol(setup$Y)] > 0, rank = 2)

# Use parameters to simulate similar data
simulated <- simulate_dgp(dgp_params, N1 = 1, T1 = 11)
tau.sim <- synthdid_estimate(simulated$Y, simulated$N0, simulated$T0)
# }