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synthetic control

Evaluating an Argentine regional tourism policy using synthetic controls: tan linda que enamora?

David McKenzie's picture
In 2003, the Argentine province of Salta launched a new tourism development policy with the explicit objective of boosting regional development. This included improving tourism and transport infrastructure, restoring historical and cultural heritage areas, tax credits for the construction and remodeling of hotels, and a major promotion campaign at the national and international levels.

Introducing 'Ask Guido'

Berk Ozler's picture
This week we're introducing our new series that we decided to call 'Ask Guido.' Guido Imbens has kindly agreed to answer technical questions every so often and we are thrilled. For this first installment, Guido starts by answering a question about standard errors and the appropriate level of clustering in matching.
 

One question that often comes up in empirical work concerns the appropriate way to calculate standard errors, and in particular the correct level of clustering. Here is a specific version of the question that someone posed, slightly paraphrased:

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.