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The inclusive Synthetic Control Method

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  • Roberta Di Stefano
  • Giovanni Mellace

Abstract

We introduce the inclusive synthetic control method (iSCM), a modification of synthetic control type methods that allows the inclusion of units potentially affected directly or indirectly by an intervention in the donor pool. This method is well suited for applications with either multiple treated units or in which some of the units in the donor pool might be affected by spillover effects. Our iSCM is very easy to implement using most synthetic control type estimators. As an illustrative empirical example, we re-estimate the causal effect of German reunification on GDP per capita allowing for spillover effects from West Germany to Austria.

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  • Roberta Di Stefano & Giovanni Mellace, 2024. "The inclusive Synthetic Control Method," Papers 2403.17624, arXiv.org.
    • Handle: RePEc:arx:papers:2403.17624
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    Cited by:

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    2. Tello-Pacheco, Mario, 2023. "Los “spillovers” del COVID-19 sobre el empleo y el ingreso en Perú," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 42(75), pages 161-195, January.
    3. David Gilchrist & Thomas Emery & Nuno Garoupa & Rok Spruk, 2023. "Synthetic Control Method: A tool for comparative case studies in economic history," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 409-445, April.
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    5. Giulio Grossi & Marco Mariani & Alessandra Mattei & Patrizia Lattarulo & Ozge Oner, 2020. "Direct and spillover effects of a new tramway line on the commercial vitality of peripheral streets. A synthetic-control approach," Papers 2004.05027, arXiv.org, revised Nov 2023.

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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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