The inclusive Synthetic Control Method

Fuente: arXiv
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Auteurs principaux: Di Stefano, Roberta, Mellace, Giovanni
Format: Preprint
Publié: 2024
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author Di Stefano, Roberta
Mellace, Giovanni
author_facet Di Stefano, Roberta
Mellace, Giovanni
contents We introduce the inclusive synthetic control method (iSCM), a modification of synthetic control methods that includes units in the donor pool potentially affected, directly or indirectly, by an intervention. This method is ideal for situations where including treated units in the donor pool is essential or where donor units may experience spillover effects. The iSCM is straightforward to implement with most synthetic control estimators. As an empirical illustration, we re-estimate the causal effect of German reunification on GDP per capita, accounting for spillover effects from West Germany to Austria.
format Preprint
id arxiv_https___arxiv_org_abs_2403_17624
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle The inclusive Synthetic Control Method
Di Stefano, Roberta
Mellace, Giovanni
Econometrics
We introduce the inclusive synthetic control method (iSCM), a modification of synthetic control methods that includes units in the donor pool potentially affected, directly or indirectly, by an intervention. This method is ideal for situations where including treated units in the donor pool is essential or where donor units may experience spillover effects. The iSCM is straightforward to implement with most synthetic control estimators. As an empirical illustration, we re-estimate the causal effect of German reunification on GDP per capita, accounting for spillover effects from West Germany to Austria.
title The inclusive Synthetic Control Method
topic Econometrics
url https://arxiv.org/abs/2403.17624