Synthetic Control and Inference

We examine properties of permutation tests in the context of synthetic control. Permutation tests are frequently used methods of inference for synthetic control when the number of potential control units is small. We analyze the permutation tests from a repeated sampling perspective and show that th...

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Bibliographic Details
Main Authors: Jinyong Hahn, Ruoyao Shi
Format: Article
Language:English
Published: MDPI AG 2017-11-01
Series:Econometrics
Subjects:
Online Access:https://www.mdpi.com/2225-1146/5/4/52
Description
Summary:We examine properties of permutation tests in the context of synthetic control. Permutation tests are frequently used methods of inference for synthetic control when the number of potential control units is small. We analyze the permutation tests from a repeated sampling perspective and show that the size of permutation tests may be distorted. Several alternative methods are discussed.
ISSN:2225-1146