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Comparative politics and the synthetic control method revisited: a note on Abadie et al. (2015)

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Listed:
  • Stefan Klößner

    (Statistics and Econometrics, Saarland University)

  • Ashok Kaul

    (Saarland University
    University of Zurich
    IPE Institute for Policy Evaluation)

  • Gregor Pfeifer

    (University of Hohenheim)

  • Manuel Schieler

    (Saarland University
    IPE Institute for Policy Evaluation)

Abstract

Recently, Abadie et al. (Am J Polit Sci 59:495–510, 2015) have expanded synthetic control methods by the so-called cross-validation technique. We find that their results are not being reproduced when alternative software packages are used or when the variables’ ordering within the dataset is changed. We show that this failure stems from the cross-validation technique relying on non-uniquely defined predictor weights. While the amount of the resulting ambiguity is negligible for the main application of Abadie et al. (Am J Polit Sci 59:495–510, 2015), we find it to be substantial for several of their robustness analyses. Applying well-defined, standard synthetic control methods reveals that the authors’ results are particularly driven by a specific control country, the USA.

Suggested Citation

  • Stefan Klößner & Ashok Kaul & Gregor Pfeifer & Manuel Schieler, 2018. "Comparative politics and the synthetic control method revisited: a note on Abadie et al. (2015)," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-11, December.
  • Handle: RePEc:spr:sjecst:v:154:y:2018:i:1:d:10.1186_s41937-017-0004-9
    DOI: 10.1186/s41937-017-0004-9
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    References listed on IDEAS

    as
    1. Laurent Gobillon & Thierry Magnac, 2016. "Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 535-551, July.
    2. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    3. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
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    6. Acemoglu, Daron & Johnson, Simon & Kermani, Amir & Kwak, James & Mitton, Todd, 2016. "The value of connections in turbulent times: Evidence from the United States," Journal of Financial Economics, Elsevier, vol. 121(2), pages 368-391.
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    More about this item

    Keywords

    Synthetic control methods; Cross-validation;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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