Synthetic Control: Math Explained
Автор: FinanceAndEconomics
Загружено: 2022-12-05
Просмотров: 13637
This is a follow up video to my explanation of synthetic control. I focus on the math behind the method.
I use the following paper for the explanation:
Andersson, Julius J. "Carbon taxes and CO 2 emissions: Sweden as a case study." American Economic Journal: Economic Policy 11.4 (2019): 1-30.
If you are more curious about the method, check out:
Abadie, Alberto, Alexis Diamond, and Jens Hainmueller. "Synth: An R package for synthetic control methods in comparative case studies." Journal of Statistical Software 42.13 (2011).
Disclaimer: If you use R, always use the improveSynth function of the following package: https://cran.r-project.org/web/packag...
The algorithm of Abadie's synth package seldom converges!!!
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