Synthetic Control Methods by Density Matching under Implicit Endogeneity

no code implementations • 20 Jul 2023 • Masahiro Kato, Akari Ohda, Masaaki Imaizumi, Kenichiro McAlinn

In this paper, we first point out that existing SCMs suffer from an implicit endogeneity problem, which is the correlation between the outcomes of untreated units and the error term in the model of a counterfactual outcome.

Causal Inference counterfactual