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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, 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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    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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