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  • question on placebo tests using synth

    Good morning,

    My question is about placebo tests using synth command.

    To do a synthetic control method on a policy intervention in the year 1991 on country1, I run the following command:

    synth depvar depvar(1960(5)1990) predictor1 predictor2 predictor3 predictor4, trunit(1) trperiod(1991) nested allopt unitnames(country) figure

    This is working quite well for me. I know I may use more precise commands but I would like to stick with synth. However, I want to conduct a placebo test in time. What code may I use? I was thinking of just changing the year of trperiod(1991) to a previous one, like 1981. However this resulted in a big placebo effect, so I don't know what my error is.

    Thank you in advance for the help!

  • #2
    Alice:
    welcome to this forum.
    If by "big placebo effect" you mean that the trajectories of the treated nation and its synthetic control (SC) counterpart remakably drift apart during 1981-1990, you may want to reconsider the way your SC was defined.
    That said, have you already perfomed an "in-space placebo" study? If that were the case, what is the post/pre RMSPE ratio for the treated nation and the base case controls?
    Kind regards,
    Carlo
    (StataNow 18.5)

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