Understanding Synthetic Control Methods | by Matteo Courthoud | Jul, 2022
A detailed guide to one of the most popular causal inference techniques in the industryCover, image by AuthorIt is now widely accepted that the gold standard technique to compute the causal effect of a treatment (a drug, ad, product, …) on an outcome of interest (a disease, firm revenue, customer satisfaction, …) is AB testing, a.k.a. randomized experiments. We randomly split a set of subjects (patients, users, customers, …) into a treatment and a control group and give the treatment to the treatment group. This procedure…