Panel parametric, semiparametric, and nonparametric construction of counterfactuals

By Cheng Hsiao, Qiankun Zhou. Journal of applied econometrics, 2018

52 citations recorded by the source corpus.

We consider panel parametric, semi-parametric and nonparametric methods of constructing counterfactuals. Through extensive simulations, no method is able to dominate other methods. In general, we fi?nd that if the observed data are stationary, the panel semi- parametric method appears capable of generating counterfactuals close to the (true) data generating process in a wide array of situations. If the data are nonstationary, then the panel nonparametric method appears to dominate the parametric or semi-parametric approaches. We also suggest a model averaging method as a robust method to generate counterfactuals. We compare the different estimates of the impact of California Tobacco Control Program on per capita cigarette consumption.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/7d4a63ffe8d979f097eea6b8413f69ca81bc8139

Citations in the corpus

• The Augmented Synthetic Control Method (2018, unknown): “These include the matrix completion method in Athey et al. (2017), the generalized synthetic control method in Xu (2017), and the combined approaches in Hsiao et al. (2018).”