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Imperfect Synthetic Controls: Did The Massachusetts Health Care Reform Save Lives?, David Powell
Imperfect Synthetic Controls: Did The Massachusetts Health Care Reform Save Lives?, David Powell
David Powell
In 2006, Massachusetts enacted comprehensive health care reform which served as a model for the Affordable Care Act. I study the mortality effects of the reform using synthetic control estimation, relaxing two critical assumptions required to implement this method. The traditional approach assumes the existence of a perfect synthetic control, which cannot exist if the outcomes of the treated unit are outside of the "convex hull" or functions of transitory shocks. I propose simple modifications to relax these restrictions. The new estimator outperforms the traditional method in simulations. I estimate that the Massachusetts Health Care Reform reduced mortality by 3%.