Synthetic control method

Difference-in-Difference or Synthetic Control Method?

2021-12-162021-12-16Jason ShafrinLeave a comment

When you want to measure the causal impact of an intervention, there are a number of different approaches. Difference in difference (DiD) and the synthetic control method (SCM) are two common methods, each of which I have already provided econometric overview summaries (DiD, SCM). A paper by Arkhangelsky et al (2021) in AER summarizes the…

2020-01-20Jason ShafrinLeave a comment

One popular technique for causal inference is difference-in-difference (DiD) estimation. Under DiD, there is one cohort of observations with both a pre and post intervention time period and another group that was not exposed to the intervention. The time trend of the group without an intervention in essence serves as a control group for the…