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Nonparametric synthetic control using the npsynth command

Author

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  • Giovanni Cerulli

    (Research Institute on Sustainable Economic Growth, National Research Council of Italy)

Abstract

In this article, I build on the work of Abadie and Gardeazabal (2003, American Economic Review 93: 113–132) and Abadie, Diamond, and Hainmueller (2010, Journal of the American Statistical Association 105: 493–505), extend- ing the synthetic control method for program evaluation—implemented in Stata via the community-contributed command synth—to the case of a nonparametric identification of the synthetic (or counterfactual) time pattern of a treated unit (a country, a region, a city, etc.) subject to a specific intervention in a given time. After theoretical description of the model, I present npsynth, the command I de- veloped for estimating the nonparametric synthetic control method proposed in this article. Using both simulated and real data, I set out a comparison of the performance of the parametric and nonparametric methods and widely discuss the results.

Suggested Citation

  • Giovanni Cerulli, 2020. "Nonparametric synthetic control using the npsynth command," Stata Journal, StataCorp LP, vol. 20(4), pages 844-865, December.
    • Handle: RePEc:tsj:stataj:v:20:y:2020:i:4:p:844-865
    DOI: 10.1177/1536867X20976315
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