Internal Validity
Chapter 7 begins with an outline and description of five threats to internal validity common to time series designs: history, maturation, instrumentation, regression, and selection. Given the fundamental role of prediction in the modern scientific method, scientific hypotheses are necessarily causal. After an outline of the evolving definition of “causality” in the social sciences, contemporary Rubin causality or counterfactual causality is introduced. Under the assumption that subjects were randomly assigned to the treatment and control groups, Rubin’s causal model allows one to estimate the unobserved causal parameter from observed data. Control time series are chosen so as to render plausible threats to internal validity implausible. An appropriate control time series may not exist, however, an ideal time series may be possible to construct. Synthetic control group models construct a control time series that optimally recreates the treated unit’s preintervention trend using a combination of untreated donor pool units.