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Synthetic Control and Inference

Author

Listed:
  • Jinyong Hahn

    () (Department of Economics, University of California Los Angeles, 8283 Bunche Hall, Los Angeles, CA 90095, USA)

  • Ruoyao Shi

    () (Department of Economics, University of California Riverside, 3136 Sproul Hall, Riverside, CA 92521, USA)

Abstract

We examine properties of permutation tests in the context of synthetic control. Permutation tests are frequently used methods of inference for synthetic control when the number of potential control units is small. We analyze the permutation tests from a repeated sampling perspective and show that the size of permutation tests may be distorted. Several alternative methods are discussed.

Suggested Citation

  • Jinyong Hahn & Ruoyao Shi, 2017. "Synthetic Control and Inference," Econometrics, MDPI, Open Access Journal, vol. 5(4), pages 1-12, November.
    • Handle: RePEc:gam:jecnmx:v:5:y:2017:i:4:p:52-:d:120610
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    Cited by:

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    3. Eli Ben-Michael & Avi Feller & Jesse Rothstein, 2018. "The Augmented Synthetic Control Method," Papers 1811.04170, arXiv.org, revised Jul 2020.
    4. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    5. Born, Benjamin & M�ller, Gernot & Schularick, Moritz & Sedlacek, Petr, 2017. "The Economic Consequences of the Brexit Vote," CEPR Discussion Papers 12454, C.E.P.R. Discussion Papers.
    6. Ferman, Bruno, 2017. "Matching Estimators with Few Treated and Many Control Observations," MPRA Paper 78940, University Library of Munich, Germany.
    7. Davide Viviano & Jelena Bradic, 2019. "Synthetic learner: model-free inference on treatments over time," Papers 1904.01490, arXiv.org.
    8. Dmitry Arkhangelsky & Susan Athey & David A. Hirshberg & Guido W. Imbens & Stefan Wager, 2019. "Synthetic Difference In Differences," NBER Working Papers 25532, National Bureau of Economic Research, Inc.
    9. Cordeiro Guerra, Susana & Lastra-Anadón, Carlos Xabel, 2019. "The quality-access tradeoff in decentralizing public services: Evidence from education in the OECD and Spain," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 295-316.
    10. Funke, Manuel & Schularick, Moritz & Trebesch, Christoph, 2020. "Populist leaders and the economy," Kiel Working Papers 2169, Kiel Institute for the World Economy (IfW).
    11. Jianfei Cao & Connor Dowd, 2019. "Estimation and Inference for Synthetic Control Methods with Spillover Effects," Papers 1902.07343, arXiv.org, revised Nov 2019.
    12. Ferman, Bruno & Pinto, Cristine, 2017. "Placebo Tests for Synthetic Controls," MPRA Paper 78079, University Library of Munich, Germany.
    13. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2020. "Populist Leaders and the Economy," ECONtribute Discussion Papers Series 036, University of Bonn and University of Cologne, Germany.
    14. Born, Benjamin & Müller, Gernot & Schularick, Moritz & Sedlacek, Petr, 2019. "Stable genius? The macroeconomic impact of Trump," CEPR Discussion Papers 13798, C.E.P.R. Discussion Papers.
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    16. Fredriksen, Kaja & Runst, Petrik, 2018. "Are estimates of the "natural experiment" in the German crafts sector causal?," ifh Working Papers 16/2018, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    17. Nikolay Doudchenko & Guido W. Imbens, 2016. "Balancing, Regression, Difference-In-Differences and Synthetic Control Methods: A Synthesis," NBER Working Papers 22791, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    synthetic control; permutation test; symmetry;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General

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