mlsanityData to 7 Oct 2026

Predictor Selection for Synthetic Controls

arXiv 2203.11576 ↗First posted 22 Mar 2022stat.ME econ.EM stat.MLcited by 0

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Abstract (arXiv)

Synthetic control methods often rely on matching pre-treatment characteristics (called predictors) of the treated unit. The choice of predictors and how they are weighted plays a key role in the performance and interpretability of synthetic control estimators. This paper proposes the use of a sparse synthetic control procedure that penalizes the number of predictors used in generating the counterfactual to select the most important predictors. We derive, in a linear factor model framework, a new model selection consistency result and show that the penalized procedure has a faster mean squared error convergence rate. Through a simulation study, we then show that the sparse synthetic control achieves lower bias and has better post-treatment performance than the un-penalized synthetic control. Finally, we apply the method to revisit the study of the passage of Proposition 99 in California in an augmented setting with a large number of predictors available.

Key facts. No citing papers in the map yet (data through 7 Oct 2026). Builds on 4 of its 26 references that are in the map. First posted on arXiv 22 Mar 2022.

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4 of 26 references.

References · 4

  1. 2018Synthetic Difference in Differencescited by 41
  2. 2017An Exact and Robust Conformal Inference Method for Counterfactual and Synthetic Controlscited by 36
  3. 2018The Augmented Synthetic Control Methodcited by 25
  4. 2022Synthetic Controls in Actioncited by 3

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