<p>In general, two most important assumptions that all Difference-in-Differences must satisfy are &quot;<strong>no anticipation effects</strong>&quot; and &quot;<strong>parallel trend</strong>&quot;.
The parallel trend is tested by testing the joint null test for the leads indicator equalling to 0 following <a href="https://arxiv.org/pdf/2108.12419.pdf" rel="nofollow noreferrer">Borusyak, 2021</a> in Assumption 1'. This is simply that if we cannot reject the null hypothesis that the joint leads indicator equalling to 0, the parallel trend is supported.</p>
<p>However, the &quot;no anticipation effect&quot; is the Assumption 2 in his paper, I do not understand how to test it. Could you please give me a guide here.</p>

CC BY-SA 4.0
2021-10-19T07:34:11.793Z
The link to the paper is not working
Jesper Hybel
CC BY-SA 4.0
2021-10-19T07:37:02.113Z
Thanks @JesperHybel . I did check and updated the link. It works from my browser now.
Nguyen Lis
<econometrics><difference-in-difference>
How to test anticipation effect in Diff-in-Diff following Borusyak, 2021?
Nguyen Lis
# How to test anticipation effect in Diff-in-Diff following Borusyak, 2021?

(Asked by: username_0 on 2021-10-19)

In general, two most important assumptions that all Difference-in-Differences must satisfy are "**no anticipation effects**" and "**parallel trend**".
The parallel trend is tested by testing the joint null test for the leads indicator equalling to 0 following [Borusyak, 2021](https://arxiv.org/pdf/2108.12419.pdf) in Assumption 1'. This is simply that if we cannot reject the null hypothesis that the joint leads indicator equalling to 0, the parallel trend is supported.

However, the "no anticipation effect" is the Assumption 2 in his paper, I do not understand how to test it. Could you please give me a guide here.

**Tags:** econometrics, difference-in-difference

> **Comments:**
> **username_1**: The link to the paper is not working  
> **username_0**: Thanks @JesperHybel . I did check and updated the link. It works from my browser now.  

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## 0 answers

