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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.

Suggested Citation

  • 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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    1. Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(1), pages 25-46, January.
    2. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    3. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    4. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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