Testing the parallel trend assumption
| Panel A | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
|---|---|---|---|---|---|---|---|---|
| F-test | 0.61 | 0.35 | 0.44 | 1.81 | 1.87 | 0.12 | 0.20 | 0.32 |
| Food at home | Alcohol | Clothes | House rent | House investments | Health | Car value | Transport | |
| p-value | 0.4334 | 0.5558 | 0.5090 | 0.1781 | 0.1714 | 0.7266 | 0.6520 | 0.5725 |
| Panel B | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) |
| Communication | Leisure | Education | Food out home | Holidays | Savings | Durables | Nondurables | |
| F-test | 0.08 | 0.18 | 0.02 | 0.85 | 2.85 | 0.53 | 0.20 | 1.01 |
| p-value | 0.7819 | 0.6720 | 0.8773 | 0.3568 | 0.0911 | 0.4684 | 0.6510 | 0.3155 |
| Panel A | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) |
|---|---|---|---|---|---|---|---|---|
| 0.61 | 0.35 | 0.44 | 1.81 | 1.87 | 0.12 | 0.20 | 0.32 | |
| Food at home | Alcohol | Clothes | House rent | House investments | Health | Car value | Transport | |
| 0.4334 | 0.5558 | 0.5090 | 0.1781 | 0.1714 | 0.7266 | 0.6520 | 0.5725 | |
| Panel B | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) |
| Communication | Leisure | Education | Food out home | Holidays | Savings | Durables | Nondurables | |
| 0.08 | 0.18 | 0.02 | 0.85 | 2.85 | 0.53 | 0.20 | 1.01 | |
| 0.7819 | 0.6720 | 0.8773 | 0.3568 | 0.0911 | 0.4684 | 0.6510 | 0.3155 |
Source: Instituto Nacional de Estadística (INE). In this table we present the results for the parallel trend assumption test, where we expect households to not anticipate the lottery income shock on their consumption of different goods. In this case, we report the F-test results and the p-values below. The main conclusions from this table are that households who live in winning regions do not alter their consumption, prior to the reception of the lottery earnings and thus, the parallel trend assumption is satisfied. We use the time-varying treatment command, following the analysis in Cerulli and Ventura (2019)
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