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Synthetic Difference in Differences for Repeated Cross-Sectional Data

Yoann Morin

arXiv 30 Sep 2024 · Econometrics

arXiv:2409.20199 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The synthetic difference-in-differences method provides an efficient method to estimate a causal effect with a latent factor model. However, it relies on the use of panel data. This paper presents an adaptation of the synthetic difference-in-differences method for repeated cross-sectional data. The treatment is considered to be at the group level so that it is possible to aggregate data by group to compute the two types of synthetic difference-in-differences weights on these aggregated data. Then, I develop and compute a third type of weight that accounts for the different number of observations in each cross-section. Simulation results show that the performance of the synthetic difference-in-differences estimator is improved when using the third type of weights on repeated cross-sectional data.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1D. Arkhangelsky, S. Athey, D. A. Hirshberg, G. W. Imbens, and S. Wager (2021) Synthetic difference-in-differences1.00063100%
2Y. Xu (2017) Generalized synthetic control method: Causal inference with interactive fixed effects models0.51121100%
3A. Abadie, A. Diamond, and J. Hainmueller (2010) Synthetic control methods for comparative case studies: Estimating the effect of California’s tobacco control program0.40511100%
4J. Bai (2009) Panel data models with interactive fixed effects0.40511100%
5S. Kranz (2022) Synthetic difference-in-differences with time-varying covariates, 20220.40511100%
6Z. Porreca (2022) Synthetic difference-in-differences estimation with staggered treatment timing0.40511100%
7J. Roth (2022) Pretest with caution: Event-study estimates after testing for parallel trends0.40511100%

Showing the top 7 of 7 scored citations.