Optimal initial donor selection for the synthetic control method

C-Tier
Journal: Economics Letters
Year: 2024
Volume: 244
Issue: C

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper argues that the performance of the Synthetic Control Method (SCM) can depend on the initial set of control units (donors) due to a bias–variance trade-off. A forward stepwise selection algorithm, validated via cross-validation, may reduce prediction error by suggesting to use fewer donors.

Technical Details

RePEc Handle
repec:eee:ecolet:v:244:y:2024:i:c:s0165176524004609
Journal Field
General
Author Count
1
Added to Database
2026-01-25