Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/5039
Type: Artigo Científico
Title: Synthetic controls with imperfect pretreatment fit
Author: Pinto, Cristine Campos de Xavier
Ferman, Bruno
Publication Date: 2021
Abstract: We analyze the properties of the Synthetic Control (SC) and related estimators when the pre-treatment fit is imperfect. In this framework, we show that these estimators are generally biased if treatment assignment is correlated with un observed confounders, even when the number of pre-treatment periods goes to infinity. Still, we show that a demeaned version of the SC method can improve in terms of bias and variance relative to the difference-in-difference estimator. We also derive a specification test for the demeaned SC estimator in this setting with imperfect pre-treatment fit. Given our theoretical results, we provide practi cal guidance for applied researchers on how to justify the use of such estimators in empirical applications.
Keywords (english terms): Synthetic control
difference-in-differences
policy evaluation
linear factor model
Language: Inglês
CNPq Area: Ciências Exatas e da Terra
Ciências Sociais Aplicadas
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR
Notes: Texto completo
Appears in Collections:Coleção de Artigos Científicos

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