Luigi Moretti
University of Bologna



(Tuesday, 17th May 2016)

Title : Measuring the effects of institutions on economic performance with the Synthetic Control Method

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A growing number of interesting contributions estimate the effects of reforms and institutional changes on economic outcomes using the Synthetic Control Method for causal inference in the context of comparative case-studies. In this workshop, we are going to: i) present the methodology; ii) review a selection of recent contributions, with a focus on the economic impact of EU institutions; iii) discuss the differences between the Synthetic Control Method and other methodologies as well as the conditions for potential prospective applications.

Bibliographical references :

Must read reference : Abadie A., A. Diamond, J. Hainmueller (2015). "Comparative Politics and the Synthetic Control Method". American Journal of Political Science, 59(2), 495–510.

Acemoglu D., S. Johnson, A. Kermani , J. Kwak, T. Mitton (forthcoming). “The Value of Connections in Turbulent Times: Evidence from the United States”, Journal of Financial Economics.

Billmeier A., T. Nannicini (2013). "Assessing Economic Liberalization Episodes: A Synthetic Control Approach". Review of Economics and Statistics, 95, 983-1001.

Campos N., F. Coricelli, L. Moretti (2015). "Norwegian Rhapsody? The Political Economy Benefits of Regional Integration". C.E.P.R. Discussion Paper no. 10653, Centre for Economic Policy Research, London.