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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

Baseline estimation is critical to Demand Response (DR) settlement in electricity markets, yet existing machine learning methods remain limited in predictive performance, while methodologies from causal inference and counterfactual…

Artificial Intelligence · Computer Science 2026-04-21 Jonas Sievers , Mardavij Roozbehani

Two-stage randomized experiments are becoming an increasingly popular experimental design for causal inference when the outcome of one unit may be affected by the treatment assignments of other units in the same cluster. In this paper, we…

Methodology · Statistics 2022-10-21 Zhichao Jiang , Kosuke Imai , Anup Malani

The synthetic control method has become a widely popular tool to estimate causal effects with observational data. Despite this, inference for synthetic control methods remains challenging. Often, inferential results rely on linear factor…

Methodology · Statistics 2024-07-09 Ignacio Martinez , Jaume Vives-i-Bastida

The synthetic control method offers a way to quantify the effect of an intervention using weighted averages of untreated units to approximate the counterfactual outcome that the treated unit(s) would have experienced in the absence of the…

Methodology · Statistics 2022-10-12 Matias D. Cattaneo , Yingjie Feng , Filippo Palomba , Rocio Titiunik

We introduce a synthetic control methodology to study policies with staggered adoption. Many policies, such as the board gender diversity policies, are replicated by other policy setters at different time frames. Our method estimates the…

Econometrics · Economics 2025-11-18 Jianfei Cao , Shirley Lu , Hang Wu

Synthetic control (SC) methods have gained rapid popularity in economics recently, where they have been applied in the context of inferring the effects of treatments on standard continuous outcomes assuming linear input-output relations. In…

Methodology · Statistics 2024-02-19 Alicia Curth , Hoifung Poon , Aditya V. Nori , Javier González

The Florence branch of an Italian supermarket chain recently implemented a strategy that permanently lowered the price of numerous store brands in several product categories. To quantify the impact of such a policy change, researchers often…

Applications · Statistics 2021-02-23 Fiammetta Menchetti , Iavor Bojinov

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

Bayesian dynamic borrowing (BDB) and synthetic control methods (SCM) are both used in clinical trial design when recruitment, retention, or allocation is a challenge. The performance of these approaches has not previously been directly…

In this paper, we propose a novel method for causal inference within the framework of counterfactual and synthetic control. Matching forward the generalized synthetic control method, our instrumented principal component analysis method…

Econometrics · Economics 2024-09-17 Cong Wang

We propose a generalization of the synthetic control and interventions methods to the setting with dynamic treatment effects. We consider the estimation of unit-specific treatment effects from panel data collected under a general treatment…

Econometrics · Economics 2025-10-03 Anish Agarwal , Sukjin Han , Dwaipayan Saha , Vasilis Syrgkanis , Haeyeon Yoon

The problem of causal inference with panel data is a central econometric question. The following is a fundamental version of this problem: Let $M^*$ be a low rank matrix and $E$ be a zero-mean noise matrix. For a `treatment' matrix $Z$ with…

Machine Learning · Statistics 2023-04-03 Vivek F. Farias , Andrew A. Li , Tianyi Peng

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

Understanding the effect of a particular treatment or a policy pertains to many areas of interest, ranging from political economics, marketing to healthcare. In this paper, we develop a non-parametric algorithm for detecting the effects of…

Methodology · Statistics 2022-08-24 Davide Viviano , Jelena Bradic

Motivated by a recent literature on the double-descent phenomenon in machine learning, we consider highly over-parameterized models in causal inference, including synthetic control with many control units. In such models, there may be so…

Econometrics · Economics 2023-10-16 Jann Spiess , Guido Imbens , Amar Venugopal

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 introduces a framework to analyze time-varying spillover effects in panel data. We consider panel models where a unit's outcome depends not only on its own characteristics (private effects) but also on the characteristics of…

Econometrics · Economics 2025-01-17 Ryo Okui , Yutao Sun , Wendun Wang

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

We propose a generalization of the synthetic controls and synthetic interventions methodology to incorporate network interference. We consider the estimation of unit-specific potential outcomes from panel data in the presence of spillover…

Econometrics · Economics 2023-10-13 Anish Agarwal , Sarah H. Cen , Devavrat Shah , Christina Lee Yu