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Compositional Synthetic Controls

Onil Boussim

arXiv 18 Jul 2026 · Econometrics

arXiv:2607.16991 · PDF · Extracted main text

Abstract

This paper develops a synthetic control estimator for compositional outcomes, vectors of shares generated by an underlying categorical process. Derived from a random utility model with interactive fixed effects on relative systematic utilities, the estimator maps compositions to log-odds, where the standard convex hull condition identifies the counterfactual as a convex combination of donor log-odds. Equivalently, it recovers the Fréchet barycenter under the Aitchison metric, the canonical geometry of the simplex (the non-linear space of shares) using a single set of weights across all categories. I also developed a placebo inference procedure based on the Aitchison distance. An application to Pennsylvania's electricity generation mix following the Alternative Energy Portfolio Standard uncovers a large and persistent compositional shift: natural gas exceeds its counterfactual by nearly 60 percentage points by 2022, while renewables lose relative ground.

Citation extraction

16
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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
1Abadie, Alberto and Diamond, Alexis and Hainmueller, Jens (2010) Synthetic control methods for comparative case studies: Estimating the effect of California’s tobacco control program1.00054100%
2Sun, Liyang and Ben-Michael, Eli and Feller, Avi (2025) Using multiple outcomes to improve the synthetic control method0.9619489%
3Aitchison, John (1982) The statistical analysis of compositional data0.84333100%
4Chernozhukov, Victor and Wüthrich, Kaspar and Yinchu Zhu (2018) Exact and robust conformal inference methods for predictive machine learning with dependent data0.84333100%
5Egozcue, Juan José and Pawlowsky-Glahn, Vera and Mateu-Figueras, Glò… (2003) Isometric logratio transformations for compositional data analysis0.64422100%
6Abadie, Alberto and Gardeazabal, Javier (2003) The economic costs of conflict: A case study of the Basque Country0.51121100%
7Tian, Wei and Lee, Seojeong and Panchenko, Valentyn (2023) Synthetic controls with multiple outcomes: Estimating the effects of non-pharmaceutical interventions in the COVID-19 pandemic0.51121100%
8Abadie, A and L'Hour, J (2017) A penalized synthetic control estimator for disaggregated data0.40511100%
9Athey, Susan and Bayati, Mohsen and Doudchenko, Nikolay and Imbens,… (2018) Matrix completion methods for causal panel data models0.40511100%
10Doudchenko, Nikolay and Imbens, Guido W (2016) Balancing, regression, difference-in-differences and synthetic control methods: A synthesis0.40511100%

Showing the top 10 of 16 scored citations.