Distribution of placebo coefficient estimates. This figure shows the result from placebo tests by randomizing both the assignment of treated states (with no replacement) and enactment years (chosen randomly from the sample period 1990–2017). In particular, we estimate the effect of pseudo-events on pseudo treated states with the full set of control variables in the baseline regression and store the coefficients and standard error estimates for each placebo test. We repeat this procedure for 5,000 times. The vertical line shows the actual coefficient from our baseline regression