microsoft / SparseSC

Fit Sparse Synthetic Control Models in Python

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Allow arbitrary subset of donors for each SC

bquistorff opened this issue · comments

There are two common scenarios where one would like to not use all donors for a SC.

  1. SUTVA violation: There might be local effects that cause "contamination" between units (e.g. if units are physical and border each other).
  2. Interpolation bias: You might want to disallow donors that have very different X since they might be included in the SC if there are other offsetting units.

I think the best way to enable this is to allow user to pass-in a valid-donor-for matrix with binary values.