Towards Reliable Synthetic Control

Making the estimated treatment effect close to the truth

Introduction

In recent years, the Synthetic Control (SC) approach has gained increasing adoption in industry for measuring the the Average Treatment Effect (ATE) of interventions when Randomized Control Trials (RCTs) are not available. One such example is measuring the financial impact of outdoor advertisements on billboards whereby we cannot conduct random treatment assignment in practice.

The basic idea of SC is to estimate ATE by …

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