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fig fix
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asjadnaqvi committed May 17, 2024
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5 changes: 3 additions & 2 deletions docs/code/06_02_bacon.md
Original file line number Diff line number Diff line change
Expand Up @@ -116,9 +116,9 @@ In the absence of controls, this is the only option we can use for running `baco

<img src="../../../assets/images/bacon1.png" width="100%">

The figure shows four points for the three groups in our example. The treated versus never treated ($$ T $$ vs $$ U $$) are triangles. Since we have an early treated (id=2) and a late treated (id=3) panel variable, the y-axis gives us beta values of 2 and 4 respectively. These values are also obvious from the simple plot of the panel variables where id=2 increases by 2 and id=3 increases by 4 over the not treated id=1. The crosses represent the late treatment versus early control ($$ T^l $$ vs $$ C^e $$), and early treatment versus late control ($$ T^e $$ vs $$ C^l $$) groups. Since these also have values of 2 and 4, their $$ \hat{\beta} $$ values on the y-axis are the same. The x-axis gives us the weights of each parameter which we will come to later.
The figure shows four points for the three groups in our example. The treated versus never treated ($$ T $$ vs $$ U $$) is shown as a triangle. Crosses represent late versus early treated ($$ T^l $$ vs $$ T^e $$) combinations. The hollow circle represents the timing groups or early versus late treatment groups ($$ T^e $$ vs $$ T^l $$).

The figure above is summarized in this table that also pops up in the output window in Stata:
The figure information is displayed in a table output:

```stata
Computing decomposition across 3 timing groups
Expand All @@ -138,6 +138,7 @@ Bacon Decomposition
| Late_v_Early | 4 .1363636317 |
| Never_v_timing | 2.933333323 .6818181841 |
+---------------------------------------------------+
```

Here we get our weights and the 2x2 $$ \beta $$ for each group. The table tells us that ($$ T $$ vs $$ U $$), which is the sum of the late and early treated versus never treated, has the largest weight, followed by early vs late treated, and lastly, late vs early treated.
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