Suppose that, in a fixed effects analysis, controlling for the policy intervention in the current time period, the next period's policy assignment predicts the outcome in the current period. This means that the research design is valid.

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This violates the time order assumption in causal inference, where the cause (policy assignment) must precede the effect (outcome). Therefore, the research design is not valid.

Suppose That, in a Fixed Effects Analysis, Controlling for the Policy