The inclusive Synthetic Control Method

Roberta Di Stefano and Giovanni Mellace

Papers from arXiv.org

Abstract: We introduce the inclusive synthetic control method (iSCM), an extension of the traditional synthetic control framework that allows units potentially affected by an intervention--either directly or through spillovers--to remain in the donor pool. Because synthetic control weights are estimated using only pre-intervention data, constructing a synthetic control for both the main treated unit and each potentially affected unit yields a linear system that links the contaminated estimates to the true effects of interest. Solving this system exactly removes the contamination without altering the underlying estimator. We illustrate the empirical relevance of our iSCM by re-estimating the effect of German reunification on GDP per capita, allowing for spillovers from West Germany to Austria.

Date: 2024-03, Revised 2026-11
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The inclusive synthetic control method (2020)
Working Paper: The inclusive synthetic control method (2020)
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