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The synthetic control (SC) method is a popular approach for estimating treatment effects from observational panel data. It rests on a crucial assumption that we can write the treated unit as a linear combination of the untreated units. This…

Methodology · Statistics 2023-02-27 Achille Nazaret , Claudia Shi , David M. Blei

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

We consider the asymptotic properties of the Synthetic Control (SC) estimator when both the number of pre-treatment periods and control units are large. If potential outcomes follow a linear factor model, we provide conditions under which…

Econometrics · Economics 2020-05-27 Bruno Ferman

Uncertainty quantification is a fundamental problem in the analysis and interpretation of synthetic control (SC) methods. We develop conditional prediction intervals in the SC framework, and provide conditions under which these intervals…

Methodology · Statistics 2021-09-09 Matias D. Cattaneo , Yingjie Feng , Rocio Titiunik

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

Since their introduction in Abadie and Gardeazabal (2003), Synthetic Control (SC) methods have quickly become one of the leading methods for estimating causal effects in observational studies in settings with panel data. Formal discussions…

Econometrics · Economics 2023-07-20 Lea Bottmer , Guido Imbens , Jann Spiess , Merrill Warnick

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

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 recently gained considerable attention in applications with only one treated unit. Their popularity is partly based on the key insight that we can predict good synthetic counterfactuals for our treated unit.…

Econometrics · Economics 2025-07-15 Tzvetan Moev

We analyze the properties of the Synthetic Control (SC) and related estimators when the pre-treatment fit is imperfect. In this framework, we show that these estimators are generally biased if treatment assignment is correlated with…

Econometrics · Economics 2021-01-13 Bruno Ferman , Cristine Pinto

This paper studies inference on treatment effects in panel data settings with unobserved confounding. We model outcome variables through a factor model with random factors and loadings. Such factors and loadings may act as unobserved…

Econometrics · Economics 2023-12-05 Guido W. Imbens , Davide Viviano

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

Synthetic control (SC) methods have been widely applied to estimate the causal effect of large-scale interventions, e.g., the state-wide effect of a change in policy. The idea of synthetic controls is to approximate one unit's…

Methodology · Statistics 2021-12-15 Claudia Shi , Dhanya Sridhar , Vishal Misra , David M. Blei

Difference-in-Differences (DiD) and Synthetic Control (SC) are widely used methods for causal inference in panel data, each with distinct strengths and limitations. We propose a novel method for short-panel causal inference that integrates…

Econometrics · Economics 2025-09-26 Yixiao Sun , Haitian Xie , Yuhang Zhang

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

We propose a sensitivity analysis for Synthetic Control (SC) treatment effect estimates to interrogate the assumption that the SC method is well-specified, namely that choosing weights to minimize pre-treatment prediction error yields…

Econometrics · Economics 2021-02-23 Billy Ferguson , Brad Ross

A common approach to constructing a Synthetic Control unit is to fit on the outcome variable and covariates in pre-treatment time periods, but it has been shown by Ferman and Pinto (2019) that this approach does not provide asymptotic…

Econometrics · Economics 2024-03-07 Joseph Fry

The synthetic control method (SCM) estimates causal effects in panel data with a single-treated unit by constructing a counterfactual outcome as a weighted combination of untreated control units that matches the pre-treatment trajectory. In…

Machine Learning · Statistics 2026-05-13 Yuxin Wang , Dennis Frauen , Emil Javurek , Konstantin Hess , Yuchen Ma , Stefan Feuerriegel

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
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