Computing Synthetic Controls Using Bilevel Optimization

The synthetic control method (SCM) is a major innovation in the estimation of causal effects of policy interventions and programs in a comparative case study setting. In this paper, we demonstrate that the data-driven approach to SCM requires solving a bilevel optimization problem. We show how the SCM problem can be solved using iterative algorithms based on Tykhonov descent or KKT approximations.

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Year of publication:	2020-11
Authors:	Malo, Pekka ; Eskelinen, Juha ; Zhou, Xun ; Kuosmanen, Timo

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Malo, Pekka and Eskelinen, Juha and Zhou, Xun and Kuosmanen, Timo (2020): Computing Synthetic Controls Using Bilevel Optimization.
Classification:	c54 ; C63 - Computational Techniques
Source:	BASE

Persistent link: https://www.econbiz.de/10015223920