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A Way to Synthetic Triple Difference

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  • Castiel Chen Zhuang

Abstract

This paper discusses a practical approach that combines synthetic control with triple difference to address violations of the parallel trends assumption. By transforming triple difference into a DID structure, we can apply synthetic control to a triple-difference framework, enabling more robust estimates when parallel trends are violated across multiple dimensions. The proposed procedure is applied to a real-world dataset to illustrate when and how we should apply this practice, while cautions are presented afterwards. This method contributes to improving causal inference in policy evaluations and offers a valuable tool for researchers dealing with heterogeneous treatment effects across subgroups.

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  • Castiel Chen Zhuang, 2024. "A Way to Synthetic Triple Difference," Papers 2409.12353, arXiv.org, revised Sep 2024.
    • Handle: RePEc:arx:papers:2409.12353
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    File URL: http://arxiv.org/pdf/2409.12353
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