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The inclusive Synthetic Control Method
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We introduce the inclusive synthetic control method (iSCM), a modification of synthetic control methods that includes units in the donor pool potentially affected, directly or indirectly, by an intervention. This method is ideal for situations where including treated units in the donor pool is essential or where donor units may experience spillover effects. The iSCM is straightforward to implement with most synthetic control estimators. As an empirical illustration, we re-estimate the causal effect of German reunification on GDP per capita, accounting for spillover effects from West Germany to Austria.
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Cited by 1 Pith paper
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Bayesian Donor Set Selection in Synthetic Controls
A Gamma–Bernoulli hierarchical prior lets Bayesian synthetic controls select donors and put exact zeros on excluded units while staying on the simplex, with posterior consistency and better recovery of sparse donors i...
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