A distributional synthetic control method for policy evaluation
Yi‐Ting Chen
Journal of Applied Econometrics, 2020, vol. 35, issue 5, 505-525
Abstract:
We extend the synthetic control method to evaluate the distributional effects of policy intervention in the possible presence of poor matching. The counterfactuals (or intervention effects) are identified by matching a vector of pre‐intervention quantile residuals of the treated unit and a convex combination of its potential‐control counterparts. The residuals are orthogonal to a set of observable common factors that control for the potentially poor matching. We also apply our method to a set of case studies that explore the distributional effects of state‐level minimum‐wage hikes in the USA.
Date: 2020
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https://doi.org/10.1002/jae.2778
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Persistent link: https://EconPapers.repec.org/RePEc:wly:japmet:v:35:y:2020:i:5:p:505-525
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