In a recent Statlist discussion (here), the question was posed about how to: "generate a graph to show how to the GDP per capita trend line would have continued if the conflict [or any discrete event] had not occurred." (emphasis added) Put slightly differently, the question involves how to over-lay two separate time-trend lines: one from actual data reflecting the influence of a discrete event and another trend line reflecting a counterfactual regression trend (that is, as if the discrete event did not happen).
To illustrate, the graph (above) plots and compares "the effect that the civil conflict in Mozambique and Rwanda have had on the GDP per capita growth in the long run" and over-lays a projected regression line reflecting GDP per capita assuming that the civil conflict did not emerge in these two countries.
While the Stata graphics coding can be tricky, the end result is a quickly interpretable graph.
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