Journal of Economic Literature
ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)
Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects
Journal of Economic Literature
vol. 59,
no. 2, June 2021
(pp. 391–425)
(Complimentary)
Abstract
Probably because of their interpretability and transparent nature, synthetic controls have become widely applied in empirical research in economics and the social sciences. This article aims to provide practical guidance to researchers employing synthetic control methods. The article starts with an overview and an introduction to synthetic control estimation. The main sections discuss the advantages of the synthetic control framework as a research design, and describe the settings where synthetic controls provide reliable estimates and those where they may fail. The article closes with a discussion of recent extensions, related methods, and avenues for future research.Citation
Abadie, Alberto. 2021. "Using Synthetic Controls: Feasibility, Data Requirements, and Methodological Aspects." Journal of Economic Literature 59 (2): 391–425. DOI: 10.1257/jel.20191450Additional Materials
JEL Classification
- B41 Economic Methodology
- C32 Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
- C54 Quantitative Policy Modeling
- E23 Macroeconomics: Production
- F15 Economic Integration
- O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence