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Synthetic control method: how to select V matrix
Synthetic control method: how to select V matrix

Dear all,

I am learning Synthetic Control method, Stata has command

Code:

synth

.
When I read the paper, "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program"
there is a very important formula
Array
We need to minimize the formula to find the weight W. But there is also a V matrix in this equation.
Would you please help me that how can I select this V matrix?

Best,
Jack

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