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cc-by (c) Albalate, Daniel, 1980- et al., 2021
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/181543

Decoupling Synthetic Control Methods to ensure stability, accuracy and meaningfulness

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The synthetic control method (SCM) is widely used to evaluate causal effects under quasi-experimental designs. However, SCM suffers from weaknesses that compromise its accuracy, stability and meaningfulness, due to the nested optimization problem of covariate relevance and counterfactual weights. We propose a decoupling of both problems. We evaluate the economic effect of government formation deadlock in Spain-2016, and find that SCM method overestimates the effect by 0.23 pp. Furthermore, we replicate two studies and compare results from standard and decoupled SCM. Decoupled SCM offers higher accuracy and stability, while ensuring the economic meaningfulness of covariates used in building the counterfactual.

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ALBALATE, Daniel, BEL I QUERALT, Germà, MAZAIRA-FONT, Ferran. Decoupling Synthetic Control Methods to ensure stability, accuracy and meaningfulness. _SERIEs. Journal of the Spanish Economic Association_. 2021. Vol. 12, núm. 4, pàgs. 549-584. [consulta: 23 de gener de 2026]. ISSN: 1869-4187. [Disponible a: https://hdl.handle.net/2445/181543]

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