Abstract We extend the inference procedure for the synthetic control method in two ways. First, we propose parametric weights for the p-value that includes the equal weights benchmark of Abadie et al. [ 1 ]. By changing the value of this parameter, we can analyze the sensitivity of the...

We evaluate the effect of the 1989 shock over economic development in four Eastern European countries. We apply a counterfactual approach and define the shock alternatively as the trigger for economic openness, political competition, or both. The main result is an effect of economic freedom...