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evaluating national policies

Evaluating Regulatory Reforms Using the Synthetic Control Method

David McKenzie's picture

Many important policies are implemented at the national level. Monetary policy, fiscal policy, and many regulations are key examples. Pure time series or before-after analysis of the impacts of changes in these policies on the economy of a country will be contaminated by other changes going on in the economy. Simply trying to difference out global trends will not account for systematic differences in the growth path of the country where the reform took place from the average global growth path. This makes evaluation of the impacts of such policies difficult.