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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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
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author Jinyong Hahn
Ruoyao Shi
author_facet Jinyong Hahn
Ruoyao Shi
author_sort Jinyong Hahn
collection DOAJ
description 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.
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spelling doaj.art-d2e71dda60d44398b113b91545eaa2b32022-12-22T04:00:05ZengMDPI AGEconometrics2225-11462017-11-01545210.3390/econometrics5040052econometrics5040052Synthetic Control and InferenceJinyong Hahn0Ruoyao Shi1Department of Economics, University of California Los Angeles, 8283 Bunche Hall, Los Angeles, CA 90095, USADepartment of Economics, University of California Riverside, 3136 Sproul Hall, Riverside, CA 92521, USAWe 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.https://www.mdpi.com/2225-1146/5/4/52synthetic controlpermutation testsymmetry
spellingShingle Jinyong Hahn
Ruoyao Shi
Synthetic Control and Inference
Econometrics
synthetic control
permutation test
symmetry
title Synthetic Control and Inference
title_full Synthetic Control and Inference
title_fullStr Synthetic Control and Inference
title_full_unstemmed Synthetic Control and Inference
title_short Synthetic Control and Inference
title_sort synthetic control and inference
topic synthetic control
permutation test
symmetry
url https://www.mdpi.com/2225-1146/5/4/52
work_keys_str_mv AT jinyonghahn syntheticcontrolandinference
AT ruoyaoshi syntheticcontrolandinference