Tree-based Synthetic Control Methods: Consequences of moving the US Embassy

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Tác giả: Nicolaj Søndergaard Mühlbach, Mikkel Slot Nielsen

Ngôn ngữ: eng

Ký hiệu phân loại: 327.11 Specific means of attaining foreign policy goals

Thông tin xuất bản: 2019

Mô tả vật lý:

Bộ sưu tập: Metadata

ID: 163330

We recast the synthetic controls for evaluating policies as a counterfactual prediction problem and replace its linear regression with a nonparametric model inspired by machine learning. The proposed method enables us to achieve accurate counterfactual predictions and we provide theoretical guarantees. We apply our method to a highly debated policy: the relocation of the US embassy to Jerusalem. In Israel and Palestine, we find that the average number of weekly conflicts has increased by roughly 103\% over 48 weeks since the relocation was announced on December 6, 2017. By using conformal inference and placebo tests, we justify our model and find the increase to be statistically significant.
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