Department of Economics
We explore the pros and cons of two counterfactual analysis methodologies — the panel data approach (PDA) and the synthetic control method (SCM) through a discussion of the differences in their underlying assumptions and a series of simulations.
Counterfactual analysis, Panel data approach, Synthetic control
Source Publication Title
© 2018 Elsevier B.V. All rights reserved.
We would like to thank a referee and M.H. Pesaran and R. Smith for helpful comments. We also wish to acknowledge the financial support of China National Science Foundation grant # 71631004.
Link to Publisher's Edition
Wan, S., Xie, Y., & Hsiao, C. (2018). Panel data approach vs synthetic control method. Economics Letters, 164, 121-123. https://doi.org/10.1016/j.econlet.2018.01.019
Additional FilesJA-5074-29476_suppl.docx (90 kB)
Appendix A. Supplementary data