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Experimentation
Synthetic Difference-in-Differences
A series on what to do when Synthetic Control cannot match your test city, for example when it is bigger than every donor, and how Synthetic Difference-in-Differences fixes it.
Part 1Synthetic DiD: Core Idea and Why It Fixes Synthetic ControlPart 1 of 3: why Synthetic Control breaks when your test city is the biggest, and the three ingredients Synthetic Difference-in-Differences adds to fix it.Part 2Synthetic DiD: Working Example With ExplanationPart 2 of 3: The Pune free-delivery example reworked as Synthetic Difference-in-Differences, with time weights explained.Part 3Synthetic DiD: Strength and PitfallsPart 3 of 3: Advantages and pitfalls of Synthetic Control and Synthetic DiD, how to read time weights, and a decision table for choosing a method.