Synthetic control method: Difference between revisions

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The '''synthetic control method''' is a statistical method used to evaluate the effect of an intervention in [[comparative case study|comparative case studies]]. It involves the construction of a weighted combination of groups used as controls, to which the [[treatment group]] is compared.<ref>{{Cite journal|last=Abadie|first=Alberto|date=2021|title=Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects|url=https://www.aeaweb.org/articles?id=10.1257/jel.20191450|journal=Journal of Economic Literature|language=en|volume=59|issue=2|pages=391–425|doi=10.1257/jel.20191450|issn=0022-0515}}</ref> This comparison is used to estimate what would have happened to the treatment group if it had not received the treatment.
Unlike [[difference in differences]] approaches, this method can account for the effects of [[confounder]]s changing over time, by weighting the control group to better match the treatment group before the intervention.<ref name=he>{{cite journal|last1=Kreif|first1=Noémi|last2=Grieve|first2=Richard|last3=Hangartner|first3=Dominik|last4=Turner|first4=Alex James|last5=Nikolova|first5=Silviya|last6=Sutton|first6=Matt|title=Examination of the Synthetic Control Method for Evaluating Health Policies with Multiple Treated Units|journal=Health Economics|date=December 2016|volume=25|issue=12|pages=1514–1528|doi=10.1002/hec.3258|pmid=26443693|pmc=5111584}}</ref> Another advantage of the synthetic control method is that it allows researchers to systematically select comparison groups.<ref name=ajps>{{cite journal|last1=Abadie|first1=Alberto|authorlink1=Alberto Abadie|last2=Diamond|first2=Alexis|last3=Hainmueller|first3=Jens|title=Comparative Politics and the Synthetic Control Method|journal=American Journal of Political Science|date=February 2015|volume=59|issue=2|pages=495–510|doi=10.1111/ajps.12116}}</ref> It has been applied to the fields of [[political science]],<ref name=ajps/> [[health policy]],<ref name=he/> [[criminology]],<ref>{{cite journal|last1=Saunders|first1=Jessica|last2=Lundberg|first2=Russell|last3=Braga|first3=Anthony A.|last4=Ridgeway|first4=Greg|last5=Miles|first5=Jeremy|title=A Synthetic Control Approach to Evaluating Place-Based Crime Interventions|journal=Journal of Quantitative Criminology|date=3 June 2014|volume=31|issue=3|pages=413–434|doi=10.1007/s10940-014-9226-5}}</ref> and [[economics]].<ref>{{cite journal|last1=Billmeier|first1=Andreas|last2=Nannicini|first2=Tommaso|title=Assessing Economic Liberalization Episodes: A Synthetic Control Approach|journal=Review of Economics and Statistics|date=July 2013|volume=95|issue=3|pages=983–1001|doi=10.1162/REST_a_00324}}</ref>