Ensemble Methods for Causal Effects in Panel Data Settings

Ensemble Methods for Causal Effects in Panel Data Settings

American Economic Review Papers and Proceedings. May
2019, Vol. 109, Pages 65-70

In many prediction problems researchers have found that combinations of prediction methods (“ensembles”) perform better than individual methods. In this paper we apply these ideas to synthetic control type problems in panel data. Here a number of conceptually quite different methods have been developed. We compare the predictive accuracy of three methods with an ensemble method and find that the latter dominates. These results show that ensemble methods are a practical and effective method for the type of data configurations typically encountered in empirical work in economics, and that these methods deserve more attention.