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<p>Business scholars often aim to establish causal inference when conducting randomized field experiments is infeasible. In such quasiexperimental contexts, the synthetic control (SC) method provides a way to estimate casual effects and researchers have applied it to a wide range of topics. However, the traditional SC method assumes that the weights of an SC unit remain constant over time—an assumption that is often unrealistic in many empirical settings. This study introduces the dynamic synthetic control method, which allows these weights to change over time. The empirical application examines Johnson County, Iowa’s marketing efforts to promote an unenforceable—and, thus, symbolic—minimum wage, higher than that required by state law, to its local businesses.</p>

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Dynamic synthetic control: estimating the marketing efforts to promote a higher-than-required wage to local businesses

  • 期刊论文

  • 发表日期：

    2026年6月26日

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  • Doug J. Chung,
  • Byoung G. Park

摘要

Business scholars often aim to establish causal inference when conducting randomized field experiments is infeasible. In such quasiexperimental contexts, the synthetic control (SC) method provides a way to estimate casual effects and researchers have applied it to a wide range of topics. However, the traditional SC method assumes that the weights of an SC unit remain constant over time—an assumption that is often unrealistic in many empirical settings. This study introduces the dynamic synthetic control method, which allows these weights to change over time. The empirical application examines Johnson County, Iowa’s marketing efforts to promote an unenforceable—and, thus, symbolic—minimum wage, higher than that required by state law, to its local businesses.