fn.V: Loss Function for nested optimization of W and V weights

Description

This is the loss function for the nested optimization of W and V weights used for constructing synthtic control groups according to the methods outlined in Abadie and Gardeazabal (2003) and Abadie, Diamond, Hainmueller (2007) (see references). This function is called by synth automatically, and should not be called manually by a normal user.

Usage

fn.V(variables.v = stop("variables.v missing"), 
X0.scaled = stop("X0.scaled missing"), X1.scaled = stop("X0.scaled missing"), 
Z0 = stop("Z0 missing"), Z1 = stop("Z1 missing"), margin.ipop = 0.0005, sigf.ipop = 4, bound.ipop = 10, ...)

Arguments

variables.v

X0.scaled

X1.scaled

margin.ipop

sigf.ipop

bound.ipop

...

Value

References

Abadie, A. and Gardeazabal, J. (2003) Economic Costs of Conflict: A Case Study of the Basque Country American Economic Review 93 (1) 113--132 http://ksghome.harvard.edu/~.aabadie.academic.ksg/ecc.pdf Abadie, A., Diamond, A., Hainmueller, J. (2007) Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California's Tobacco Control Program NBER Technical Working Paper no 335 http://www.people.fas.harvard.edu/~jhainm/

Examples

Run this code

##---- Should be DIRECTLY executable !! ----
##-- ==>  Define data, use random,
##--	or do  help(data=index)  for the standard data sets.