Synthetic Controls with spillover effects: A comparative study

Fuente: arXiv
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Auteur principal: Melnychuk, Andrii
Format: Preprint
Publié: 2024
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author Melnychuk, Andrii
author_facet Melnychuk, Andrii
contents Iterative Synthetic Control Method is introduced in this study, a modification of the Synthetic Control Method (SCM) designed to improve its predictive performance by utilizing control units affected by the treatment in question. This method is then compared to other SCM modifications: SCM without any modifications, SCM after removing all spillover-affected units, Inclusive SCM, and the SP SCM model. For the comparison, Monte Carlo simulations are utilized, generating artificial datasets with known counterfactuals and comparing the predictive performance of the methods. Generally, the Inclusive SCM performed best in all settings and is relatively simple to implement. The Iterative SCM, introduced in this paper, was in close seconds, with a small difference in performance and a simpler implementation.
format Preprint
id arxiv_https___arxiv_org_abs_2405_01645
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Synthetic Controls with spillover effects: A comparative study
Melnychuk, Andrii
Econometrics
Iterative Synthetic Control Method is introduced in this study, a modification of the Synthetic Control Method (SCM) designed to improve its predictive performance by utilizing control units affected by the treatment in question. This method is then compared to other SCM modifications: SCM without any modifications, SCM after removing all spillover-affected units, Inclusive SCM, and the SP SCM model. For the comparison, Monte Carlo simulations are utilized, generating artificial datasets with known counterfactuals and comparing the predictive performance of the methods. Generally, the Inclusive SCM performed best in all settings and is relatively simple to implement. The Iterative SCM, introduced in this paper, was in close seconds, with a small difference in performance and a simpler implementation.
title Synthetic Controls with spillover effects: A comparative study
topic Econometrics
url https://arxiv.org/abs/2405.01645