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Synthetic control methods are widely used to estimate the treatment effect on a single treated unit in time-series settings. A common approach to estimate synthetic control weights is to regress the treated unit's pre-treatment outcome and…

Methodology · Statistics 2025-03-06 Chan Park , Eric Tchetgen Tchetgen

We investigate the optimal design of experimental studies that have pre-treatment outcome data available. The average treatment effect is estimated as the difference between the weighted average outcomes of the treated and control units. A…

Estimating weights in the synthetic control method, typically resulting in sparse weights where only a few control units have non-zero weights, involves an optimization procedure that selects and combines control units to closely match the…

Econometrics · Economics 2026-02-03 Rong J. B. Zhu

Staggered adoption of policies by different units at different times creates promising opportunities for observational causal inference. Estimation remains challenging, however, and common regression methods can give misleading results. A…

Methodology · Statistics 2021-01-19 Eli Ben-Michael , Avi Feller , Jesse Rothstein

This article studies experimental design in settings where the experimental units are large aggregate entities (e.g., markets), and only one or a small number of units can be exposed to the treatment. In such settings, randomization of the…

Methodology · Statistics 2025-04-24 Alberto Abadie , Jinglong Zhao

The synthetic control method is a an econometric tool to evaluate causal effects when only one unit is treated. While initially aimed at evaluating the effect of large-scale macroeconomic changes with very few available control units, it…

To estimate the causal effect of an intervention, researchers need to identify a control group that represents what might have happened to the treatment group in the absence of that intervention. This is challenging without a randomized…

Methodology · Statistics 2026-03-20 Robert Pickett , Jennifer Hill , Sarah Cowan

Synthetic control methods have gained popularity among causal studies with observational data, particularly when estimating the impacts of the interventions that are implemented to a small number of large units. Implementing the synthetic…

Methodology · Statistics 2020-05-29 Gyuhyeong Goh , Jisang Yu

To infer the treatment effect for a single treated unit using panel data, synthetic control methods construct a linear combination of control units' outcomes that mimics the treated unit's pre-treatment outcome trajectory. This linear…

Methodology · Statistics 2024-05-07 Hongxiang Qiu , Xu Shi , Wang Miao , Edgar Dobriban , Eric Tchetgen Tchetgen

Synthetic Control Methods (SCMs) have become a fundamental tool for comparative case studies. The core idea behind SCMs is to estimate treatment effects by predicting counterfactual outcomes for a treated unit using a weighted combination…

Econometrics · Economics 2025-11-10 Masahiro Kato , Akari Ohda

We generalize the synthetic control (SC) method to a multiple-outcome framework, where the conventional pre-treatment time dimension is supplemented with the extra dimension of related outcomes in computing the SC weights. This…

General Economics · Economics 2024-07-29 Wei Tian , Seojeong Lee , Valentyn Panchenko

Synthetic control (SC) methods are commonly used to estimate the treatment effect on a single treated unit in panel data settings. An SC is a weighted average of control units built to match the treated unit, with weights typically…

Methodology · Statistics 2023-02-21 Xu Shi , Kendrick Li , Wang Miao , Mengtong Hu , Eric Tchetgen Tchetgen

This paper extends the literature on the theoretical properties of synthetic controls to the case of non-linear generative models, showing that the synthetic control estimator is generally biased in such settings. I derive a lower bound for…

Econometrics · Economics 2021-11-23 Oscar Engelbrektson

We present a robust generalization of the synthetic control method for comparative case studies. Like the classical method, we present an algorithm to estimate the unobservable counterfactual of a treatment unit. A distinguishing feature of…

Econometrics · Economics 2017-11-21 Muhammad Jehangir Amjad , Devavrat Shah , Dennis Shen

The synthetic control method (SCM) is a popular approach for estimating the impact of a treatment on a single unit with panel data. Two challenges arise with higher frequency data (e.g., monthly versus yearly): (1) achieving excellent…

Econometrics · Economics 2024-04-16 Liyang Sun , Eli Ben-Michael , Avi Feller

When there are multiple outcome series of interest, Synthetic Control analyses typically proceed by estimating separate weights for each outcome. In this paper, we instead propose estimating a common set of weights across outcomes, by…

Econometrics · Economics 2025-02-13 Liyang Sun , Eli Ben-Michael , Avi Feller

The synthetic control method (SCM) is a popular approach for estimating the impact of a treatment on a single unit in panel data settings. The "synthetic control" is a weighted average of control units that balances the treated unit's…

Methodology · Statistics 2020-07-24 Eli Ben-Michael , Avi Feller , Jesse Rothstein

Popular empirical strategies for policy evaluation in the panel data literature -- including difference-in-differences (DID), synthetic control (SC) methods, and their variants -- rely on key identifying assumptions that can be expressed…

Econometrics · Economics 2025-11-11 Yiqi Liu

This paper provides new insights into the asymptotic properties of the synthetic control method (SCM). We show that the synthetic control (SC) weight converges to a limiting weight that minimizes the mean squared prediction risk of the…

Econometrics · Economics 2022-11-23 Xiaomeng Zhang , Wendun Wang , Xinyu Zhang

This paper reinterprets the Synthetic Control (SC) framework through the lens of weighting philosophy, arguing that the contrast between traditional SC and Difference-in-Differences (DID) reflects two distinct modeling mindsets: sparse…

Methodology · Statistics 2025-10-31 Le Wang , Xin Xing , Youhui Ye
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