In response to the invasion of Ukraine, the EU and most other advanced economies imposed extensive sanctions on Russia, intending to harm its production capabilities and hinder its economic activities by restricting its access to international trade and financial markets. This paper develops an empirical framework based on the synthetic control method to assess the impact of the war and the following sanctions on bilateral and sectoral exports to Russia almost in real time. The war and the following sanctions reduced aggregate exports to Russia by a third between March and December 2022, with the effects being stronger for sanctioning countries than for non-sanctioning ones, albeit with substantial country-level heterogeneity within each group. Exports to Russia in high-tech sectors – relatively more targeted by trade sanctions – have been disproportionately affected.

Institutions matter for postdisaster recovery. Conversely, natural disasters can also alter a society's institutions. Using the synthetic control method, this study examines the effects that Hurricane Katrina (2005) had on the formal and informal institutions in Louisiana. As measures of formal institutions, we employ two economic freedom scores corresponding to government employment (GE) (as a share of total employment at the state-level) and property tax (PT). These measures serve as proxies for the level of governmental interference into the economy and the protection of private property rights respectively. To assess the impact on informal institutions, we use state-level social capital data. We find that Hurricane Katrina had lasting impacts on Louisiana's formal institutions. In the post-Katrina period, we find that actual Louisiana had persistently higher economic freedom scores for both GE and PT than the synthetic Louisiana that did not experience the hurricane. These findings imply that the hurricane led to a reduction in both PTs and GE, which indicates a decrease in the relative size of the public sector as a share of the state's economy. On the other hand, we find no impact on our chosen measure of informal institution.

How do failed coups influence power personalization in dictatorships? While scholars have studied the mechanisms of personalism in dictatorships in detail, little attention has been paid to the timing and determinants of surges in personalism levels. In this article, we propose that personalism can evolve non-linearly, and show that large, quite rapid increases in personalization by dictators occur after a failed coup attempt. The logic is that failed coups are information-revealing events that provide the dictator with strong motives and ample opportunities to accumulate power. The leader uses this window of opportunity to rapidly consolidate his power at the expense of the ruling coalition. We test the theory using time-series, cross-sectional data on dictatorships in 114 countries in the period between 1946 and 2010. Two placebo tests indicate that disruptive events by regime outsiders – failed assassination attempts and civil war onsets – do not promote the rush to personalize.

Bison is an important and iconic mammal in the U.S. that is being reintroduced in many places after being driven nearly to extinction. This paper provides a nationwide assessment of the local economic impacts of bison reintroduction so that rural communities can take economic well-being into account when considering decisions regarding future bison restorations. We estimate the causal impacts of bison herd establishment on county-level income, employment, and population growth using staggered difference-in-difference and the synthetic control approaches. The simple positive correlation between local per capita income and bison herds might lead planners to think that bison reintroduction is good for the local economy. However, none of the causal inference analyses find statistically significant effects of bison reintroduction.

This article analyzes the impact of Augusto Pinochet’s autocracy on the Chilean economy. The study compares outcomes under Pinochet’s leadership with those in a synthetic counterfactual made of a weighted average of countries with similar characteristics. It finds that, relative to the control, Chilean income per capita greatly underperformed for at least the first fifteen years after Pinochet’s coup. The results are robust to extending the pool of donor countries and expanding the pretreatment period by switching data sets to capture potential heterogeneity of effects. The evidence suggests that Chile’s remarkable economic growth during the period 1985–1997 did not depend on Pinochet’s autocracy. These results further bring into question the effectiveness of the regime to enhance economic growth and the narrative of the Chilean miracle.

How much do electoral institutions matter for the rise of populist parties? Evidence on this question is mixed, with some scholars arguing that the role of electoral rules is small. We provide new evidence for the impact of electoral system change. The UK's adoption of a proportional electoral system for European elections in 1999 provides a unique opportunity to study the link between electoral rules and the ascendancy of right-wing populist parties. Employing both synthetic control and difference-in-difference methods, we estimate that the electoral reform increased the vote share of right-wing populists by about 12 to 13.5 percentage points on average. During a time when populism was rising across Europe, the reform abruptly shifted populist votes in the UK above the European trend and above more plausible comparison cases. Our results also imply that caution is needed when empirical results based on partial reforms are extrapolated to electoral system change.

Overcoming vaccine hesitancy is critical to containing the COVID-19 pandemic in the United States. To increase vaccination rates, the State of Ohio launched a million dollar lottery in May 2021. Following a pre-registered analysis, we estimate the effects of Ohio’s lottery program Vax-a-Million on COVID-19 vaccination rates by comparing it to a “synthetic control” composed of eight other states. We find a statistically insignificant 1.3% decrease in the full vaccination rate in Ohio at the end of the lottery period. We investigate the robustness of our conclusion to model specifications through a multiverse analysis of 216 possible models, including longer time periods and alternative vaccination measures. The majority (88%) find small negative effects in line with the results of our pre-registered model. While our results are most consistent with a decrease in vaccination rate, they do not allow a firm conclusion on whether the lottery increased or decreased vaccine uptake.

In October 2015, the International Agency for Research on Cancer (IARC) released a report classifying processed meat as a type 1 carcinogen. The report prompted headlines and attracted immediate public attention, but the economic impacts remain unknown. In this paper, we investigate the impacts of the IARC report on selected processed meat prices and purchases using retail scanner data from US grocery stores. We compare changes in prices and sales of selected processed meat products to a constructed synthetic control group (using a convex combination of nonmeat food products). We find a significant decrease in bacon prices in the wake of the IARC report release, but we find no evidence of a sales reduction. We find no significant changes in price and sales for ham and sausage. The pattern of price and quantity changes are consistent with downward shifts in demand and outward shifts in supply for bacon and sausage following the release of the IARC report.

This paper proposes a Bayesian alternative to the synthetic control method for comparative case studies with a single or multiple treated units. We adopt a Bayesian posterior predictive approach to Rubin’s causal model, which allows researchers to make inferences about both individual and average treatment effects on treated observations based on the empirical posterior distributions of their counterfactuals. The prediction model we develop is a dynamic multilevel model with a latent factor term to correct biases induced by unit-specific time trends. It also considers heterogeneous and dynamic relationships between covariates and the outcome, thus improving precision of the causal estimates. To reduce model dependency, we adopt a Bayesian shrinkage method for model searching and factor selection. Monte Carlo exercises demonstrate that our method produces more precise causal estimates than existing approaches and achieves correct frequentist coverage rates even when sample sizes are small and rich heterogeneities are present in data. We illustrate the method with two empirical examples from political economy.

The welfare state literature argues that Social Democratic party representation is of key importance for welfare state outcomes. However, few papers are able to separate the influence of parties from voter preferences, which implies that the partisan effects will be overstated. I study a natural experiment to identify a partisan effect. In 1995, the Labour Party (Ap) in the Norwegian municipality of Flå filed their candidate list too late and could not participate in the local election. Ap was the largest party in Flå in the entire post-World War period, but have not regained this position. I use the synthetic control method to study the effects on welfare spending priorities. I find small and insignificant partisan effects.

Japan's remarkable postwar growth spurt in the 1960s would not have been possible without Japan's alliance with the United States. Policy makers, political scientists, economists, historians, and journalists on both sides of the Pacific have made this claim, but no study has yet tested it with modern statistical methods. In this article, we compare the economic growth trajectories of Japan and a statistically constructed “synthetic” Japan, which had a similar profile until the late 1950s but did not experience the consolidation of the US–Japan alliance, a process that began in 1958 and culminated with the signing of a formal defense pact in January 1960. We find that Japan's per capita gross domestic product (GDP) grew much faster than the synthetic Japan's from 1958 to 1968. We substantiate these results with in-depth historical analyses on how the United States facilitated Japan's economic miracle.