Synthetic controls with imperfect pretreatment fit

نویسندگان

چکیده

We analyze the properties of Synthetic Control (SC) and related estimators when pre?treatment fit is imperfect. In this framework, we show that these are generally biased if treatment assignment correlated with unobserved confounders, even number periods goes to infinity. Still, a demeaned version SC method can improve in terms bias variance relative difference?in?difference estimator. also derive specification test for estimator setting imperfect fit. Given our theoretical results, provide practical guidance applied researchers on how justify use such empirical applications.

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ژورنال

عنوان ژورنال: Quantitative Economics

سال: 2021

ISSN: ['1759-7331', '1759-7323']

DOI: https://doi.org/10.3982/qe1596