NPSYNTH: Stata module to implement Nonparametric Synthetic Control Method

Giovanni Cerulli

Statistical Software Components from Boston College Department of Economics

Abstract: npsynth extends the Synthetic Control Method (SCM) for program evaluation proposed by Abadie and Gardeazabal (AER, 2003) and Abadie, Diamond, and Hainmueller (JASA, 2010) to the case of a nonparametric identification of the synthetic (or counterfactual) time pattern of a treated unit. The model assumes that the treated unit - such as a country, a region, a city, etc. - underwent a specific intervention in a given year, and estimates its counterfactual time pattern, the one without intervention, as a weighted linear combination of control units based on the predictors of the outcome. The nonparamentric imputation of the counterfactual is computed using weights proportional to the vector-distance between the treated unit's and the controls' predictors, using a kernel function with pre-fixed bandwidth. The routine provides a graphical representation of the results for validation purposes.

Language: Stata
Requires: Stata version 15, moremata and mahapick from SSC (q.v.)
Keywords: synthetic control method; program evaluation (search for similar items in EconPapers)
Date: 2017-09-13, Revised 2020-06-23
Note: This module should be installed from within Stata by typing "ssc install npsynth". The module is made available under terms of the GPL v3 (https://www.gnu.org/licenses/gpl-3.0.txt). Windows users should not attempt to download these files with a web browser.
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Downloads: (external link)
http://fmwww.bc.edu/repec/bocode/n/npsynth.ado program code (text/plain)
http://fmwww.bc.edu/repec/bocode/n/npsynth.sthlp help file (text/plain)
http://fmwww.bc.edu/repec/bocode/a/Application_npsynth.do sample do-file (text/plain)
http://fmwww.bc.edu/repec/bocode/s/Simulation_npsynth.do sample do-file (text/plain)
http://fmwww.bc.edu/repec/bocode/i/Ita_exp_euro.dta sample data file (application/x-stata)

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