Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls
Laurent Gobillon
(1, 2, 3, 4)
,
Thierry Magnac
(5)
Laurent Gobillon
- Fonction : Auteur
- PersonId : 743074
- IdHAL : laurent-gobillon
- ORCID : 0000-0003-4849-7397
- IdRef : 105651346
Résumé
In this paper, we investigate the use of interactive effect or linear factor models in regional policy evaluation. We contrast treatment effect estimates obtained using Bai (2009) with those obtained using difference in differences and synthetic controls (Abadie and coauthors). We show that difference in differences are generically biased, and we derive support conditions for synthetic controls. We construct Monte Carlo experiments to compare these estimation methods in small samples. As an empirical illustration, we provide an evaluation of the impact on local unemployment of an enterprise zone policy implemented in France in the 1990s.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls
|
Résumé |
en
In this paper, we investigate the use of interactive effect or linear factor models in regional policy evaluation. We contrast treatment effect estimates obtained using Bai (2009) with those obtained using difference in differences and synthetic controls (Abadie and coauthors). We show that difference in differences are generically biased, and we derive support conditions for synthetic controls. We construct Monte Carlo experiments to compare these estimation methods in small samples. As an empirical illustration, we provide an evaluation of the impact on local unemployment of an enterprise zone policy implemented in France in the 1990s.
|
Auteur(s) |
Laurent Gobillon
1, 2, 3, 4
, Thierry Magnac
5
1
PSE -
Paris-Jourdan Sciences Economiques
( 139754 )
- 48 boulevard Jourdan 75014 Paris
- France
2
INED -
Institut national d'études démographiques
( 57627 )
- Campus Condorcet
9, cours des Humanités - CS 50004
93322 Aubervilliers Cedex
- France
3
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
4
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
5
TSE-R -
Toulouse School of Economics
( 93477 )
- Manufacture de Tabacs, 21 allées de Brienne 31000 Toulouse
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2016-07
|
Volume |
98
|
Numéro |
3
|
Page/Identifiant |
535-551
|
Domaine(s) |
|
Mots-clés |
en
Regional policy
|
DOI | 10.1162/REST_a_00537 |
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