A flexible Synthetic Control Method for modeling policy evaluation

Giovanni Cerulli

Economics Letters, 2019, vol. 182, issue C, 40-44

Abstract: We extend the Synthetic Control Method (SCM) of Abadie et al. (2010) for policy evaluation through a flexible nonparametric construction of the weights for estimating the synthetic (or counterfactual) time pattern of a treated unit. We present a comparison of both methods to assess the effects of adopting the Euro as national currency on Italian exports. Results show that both methods provide a small pre-treatment prediction error. However, when departing from the beginning of the pre-treatment period, the nonparametric SCM slightly outperforms the parametric one.

Keywords: Synthetic control; Nonparametric estimation; Program evaluation (search for similar items in EconPapers)
JEL-codes: C01 C14 C52 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176519301788
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:182:y:2019:i:c:p:40-44

DOI: 10.1016/j.econlet.2019.05.019

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().