17.5 How it’s used with regressions
- estimate one regression of the outcome on the time period before the event
- estimate outcome on the time period after the event
- check difference
- doesn’t have to be linear
\[ Outcome = \beta_0 + \beta_1 t + \beta_2 After + \beta_3 t \times After + \epsilon \]
- more precise estimate of time trend than going day by day
- but limited by shape
- but need to be careful about significance testing (autocorrelation)
- use HAC standard errors