scholarly journals Synthetic control method with convex hull restrictions: A Bayesian maximum a posteriori approach

2021 ◽  
Author(s):  
Gyuhyeong Goh ◽  
Jisang Yu
Keyword(s):  
Convex Hull ◽  
Control Method ◽  
Maximum A Posteriori ◽  
Synthetic Control ◽  
Control Methods ◽  
A Posteriori ◽  
Bayesian Approaches ◽  
Synthetic Control Method ◽  
Statistical Inferences ◽  
Synthetic Control Methods

Abstract Synthetic control methods have gained popularity among causal studies with observational data, particularly when estimating the impacts of the interventions implemented to a small number of large units. The synthetic control methods face two major challenges: a) estimating weights for each donor to create a synthetic control and b) providing statistical inferences. To overcome these challenges, we propose a Bayesian framework that implements the synthetic control method with the parallelly shiftable convex hull and provides a Bayesian inference, which is from the duality between a penalized least squares and a Bayesian Maximum A Posteriori (MAP) approaches. Our approach differs from the recent Bayesian approaches, which allow violating the convex hull restriction and face the potential extrapolation bias. Simulation results indicate that the proposed method leads to smaller biases compared to alternatives. We revisit Abadie and Gardeazabal (2003) by applying our proposed method.

scholarly journals Decoupling synthetic control methods to ensure stability, accuracy and meaningfulness

SERIEs ◽  
2021 ◽  
Author(s):  
Daniel Albalate ◽  
Germà Bel ◽  
Ferran A. Mazaira-Font
Keyword(s):  
Optimization Problem ◽  
Control Method ◽  
Economic Effect ◽  
Causal Effects ◽  
Synthetic Control ◽  
Control Methods ◽  
Synthetic Control Method ◽  
Synthetic Control Methods ◽  
Quasi Experimental ◽  
Accuracy And Stability

AbstractThe synthetic control method (SCM) is widely used to evaluate causal effects under quasi-experimental designs. However, SCM suffers from weaknesses that compromise its accuracy, stability and meaningfulness, due to the nested optimization problem of covariate relevance and counterfactual weights. We propose a decoupling of both problems. We evaluate the economic effect of government formation deadlock in Spain-2016 and find that SCM method overestimates the effect by 0.23 pp. Furthermore, we replicate two studies and compare results from standard and decoupled SCM. Decoupled SCM offers higher accuracy and stability, while ensuring the economic meaningfulness of covariates used in building the counterfactual.

Using Synthetic Controls to Evaluate the Effect of Unique Interventions: The Case of Say Yes to Education

2017 ◽  
Vol 41 (6) ◽  
pp. 593-619 ◽  
Author(s):  
Robert Bifulco ◽  
Ross Rubenstein ◽  
Hosung Sohn
Keyword(s):  
New York ◽  
School District ◽  
Graduation Rates ◽  
Control Method ◽  
New York State ◽  
Synthetic Control ◽  
Control Methods ◽  
Public And Private ◽  
Synthetic Control Methods ◽  
Synthetic Controls

Background: “Place-based” scholarships seek to improve student outcomes in urban school districts and promote urban revitalization in economically challenged cities. Say Yes to Education is a unique district-wide school reform effort adopted in Syracuse, NY, in 2008. It includes full-tuition scholarships for public and private universities, coupled with extensive wraparound support services in schools. Objectives: This study uses synthetic control methods to evaluate the effect of Say Yes on district enrollment and graduation rates. It also introduces the synthetic control method and provides guidance for its use in evaluating single-site interventions. Method: Combining school district-level data from the National Center for Education Statistics’ Common Core of Data and New York State School Report Cards, this article uses synthetic control methods to construct a synthetic comparison district to estimate counterfactual enrollment and graduation trends for Syracuse. Results: We find that Say Yes to Education was associated with enrollment increases in the Syracuse City School District, a district that had previously experienced decades of sustained enrollment declines. We do not find consistent evidence of changes in graduation rates following adoption of the program. Conclusions: Graduation rate analyses demonstrate that estimates of treatment effects can be sensitive to choices that the researcher has to make in applying synthetic control methods, particularly when pretreatment outcome measures appear to have considerable amounts of noise.

Applying Synthetic Control Method to Estimate the Impact of the Lava Jato Operation on the Worldwide Governance Indicators in Brazil

2021 ◽  
pp. 2631309X2110178
Author(s):  
Eduardo Carvalho Nepomuceno Alencar ◽  
Bryant Jackson-Green
Keyword(s):  
Rule Of Law ◽  
Control Method ◽  
Synthetic Control ◽  
Synthetic Control Method ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Legal Judgments ◽  
The Impact ◽  
Control Of Corruption

In 2014, the most prominent anti-corruption investigation in Latin America called Lava Jato, exposed a Brazilian corruption scheme with reverberations in 61 countries, resulting in legal judgments for nearly 5 billion USD in reimbursements thus far. This article applies the synthetic control method on data from 135 countries (2002–2018) to test the hypothesis that Lava Jato impacts the Worldwide Governance Indicators in Brazil. The findings reveal that Lava Jato negatively affects control of corruption, the rule of law, and regulatory quality. There are signs of possible improvement in at least the corruption and the rule of law measures. This paper brings value to the criminological body of literature, notably lacking in the Global South.

scholarly journals When is a Match Sufficient? A Score-based Balance Metric for the Synthetic Control Method

2020 ◽  
Vol 8 (1) ◽  
pp. 209-228
Author(s):  
Layla Parast ◽  
Priscillia Hunt ◽  
Beth Ann Griffin ◽  
David Powell
Keyword(s):  
Los Angeles ◽  
Control Method ◽  
Control Unit ◽  
Treated Group ◽  
Control Group ◽  
Synthetic Control ◽  
Donor Pool ◽  
Synthetic Control Method ◽  
The Mean ◽  
The Impact

AbstractIn some applications, researchers using the synthetic control method (SCM) to evaluate the effect of a policy may struggle to determine whether they have identified a “good match” between the control group and treated group. In this paper, we demonstrate the utility of the mean and maximum Absolute Standardized Mean Difference (ASMD) as a test of balance between a synthetic control unit and treated unit, and provide guidance on what constitutes a poor fit when using a synthetic control. We explore and compare other potential metrics using a simulation study. We provide an application of our proposed balance metric to the 2013 Los Angeles (LA) Firearm Study [9]. Using Uniform Crime Report data, we apply the SCM to obtain a counterfactual for the LA firearm-related crime rate based on a weighted combination of control units in a donor pool of cities. We use this counterfactual to estimate the effect of the LA Firearm Study intervention and explore the impact of changing the donor pool and pre-intervention duration period on resulting matches and estimated effects. We demonstrate how decision-making about the quality of a synthetic control can be improved by using ASMD. The mean and max ASMD clearly differentiate between poor matches and good matches. Researchers need better guidance on what is a meaningful imbalance between synthetic control and treated groups. In addition to the use of gap plots, the proposed balance metric can provide an objective way of determining fit.

scholarly journals Campaign Finance Regulations and Public Policy

2021 ◽  
pp. 1-8
Author(s):  
MARTIN GILENS ◽  
SHAWN PATTERSON ◽  
PAVIELLE HAINES
Keyword(s):  
Government Policy ◽  
Policy Making ◽  
Campaign Finance ◽  
Control Method ◽  
Synthetic Control ◽  
Synthetic Control Method ◽  
Citizens United ◽  
Independent Expenditures ◽  
American Elections ◽  
The U.S

Abstract Despite a century of efforts to constrain money in American elections, there is little consensus on whether campaign finance regulations make any appreciable difference. Here we take advantage of a change in the campaign finance regulations of half of the U.S. states mandated by the Supreme Court’s Citizens United decision. This exogenously imposed change in the regulation of independent expenditures provides an advance over the identification strategies used in most previous studies. Using a generalized synthetic control method, we find that after Citizens United, states that had previously banned independent corporate expenditures (and thus were “treated” by the decision) adopted more “corporate-friendly” policies on issues with broad effects on corporations’ welfare; we find no evidence of shifts on policies with little or no effect on corporate welfare. We conclude that even relatively narrow changes in campaign finance regulations can have a substantively meaningful influence on government policy making.

Sign in / Sign up

Export Citation Format

Share Document