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NPSYNTH: Stata module to implement Nonparametric Synthetic Control Method

Author

Listed:
  • Giovanni Cerulli

    (IRCrES-CNR)

Programming Language

Stata

Abstract

npsynth extends the Synthetic Control Method (SCM) for program evaluation proposed by Abadie and Gardeazabal (AER, 2003) and Abadie, Diamond, and Hainmueller (JASA, 2010) to the case of a nonparametric identification of the synthetic (or counterfactual) time pattern of a treated unit. The model assumes that the treated unit - such as a country, a region, a city, etc. - underwent a specific intervention in a given year, and estimates its counterfactual time pattern, the one without intervention, as a weighted linear combination of control units based on the predictors of the outcome. The nonparamentric imputation of the counterfactual is computed using weights proportional to the vector-distance between the treated unit's and the controls' predictors, using a kernel function with pre-fixed bandwidth. The routine provides a graphical representation of the results for validation purposes.

Suggested Citation

  • Giovanni Cerulli, 2017. "NPSYNTH: Stata module to implement Nonparametric Synthetic Control Method," Statistical Software Components S458398, Boston College Department of Economics, revised 23 Jun 2020.
    • Handle: RePEc:boc:bocode:s458398
    Note: This module should be installed from within Stata by typing "ssc install npsynth". The module is made available under terms of the GPL v3 (https://www.gnu.org/licenses/gpl-3.0.txt). Windows users should not attempt to download these files with a web browser.
    as

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    File URL: http://fmwww.bc.edu/repec/bocode/n/npsynth.ado
    File Function: program code
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    File URL: http://fmwww.bc.edu/repec/bocode/n/npsynth.sthlp
    File Function: help file
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    File URL: http://fmwww.bc.edu/repec/bocode/a/Application_npsynth.do
    File Function: sample do-file
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    File URL: http://fmwww.bc.edu/repec/bocode/s/Simulation_npsynth.do
    File Function: sample do-file
    Download Restriction: no
    File URL: http://fmwww.bc.edu/repec/bocode/i/Ita_exp_euro.dta
    File Function: sample data file
    Download Restriction: no
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