There has been a growing interest in approaches to causal interpretation of potential policy effect employing synthetic control methods, machine learning approaches and more general stochastic processes settings.
Since its introduction (Abadie, Diamond and Hainmueller, 2010[1]), the Synthetic Control Method (SCM) has become a powerful statistical technique used to evaluate the effects of interventions or treatments in comparative case studies, particularly when a single unit (e.g. a country, region, or city) undergoes an intervention, and suitable control units are available for comparison. SCM constructs a weighted combination of control units to create a “synthetic” version of the treated unit, which approximates what would have happened in the absence of the intervention. This method has been widely applied across various fields, including economics, political science, and public health. Klößner and Pfeifer (2017[2]), for instance, explored the use of SCM as a pure forecasting tool. By applying SCM to the United States GDP growth, the authors demonstrate that it performs competitively compared to alternative forecasting methods. This idea has now been embraced by several scholars to study the impact of external events (e.g. economic crisis, war, climate events) on migration flows.
SCM has increasingly attracted the attention of migration experts as well particularly for policy impact analysis and natural experiments, like macro shocks (e.g. climate change, conflict). Rodríguez Sánchez et al. (2023[3]), for instance, explored the ability of Bayesian Structural Time Series (BSTS) models (Scott and Varian (2014[4])) in the context of irregular border crossings forecast. BSTS is a robust statistical approach for time series analysis, particularly suited for causal inference in observational data with complex temporal patterns. In that particular application, the model constructs a synthetic counterfactual by forecasting what the number of arrivals would have been in the absence of policy, based on historical trends and covariates such as climate, political events, and economic factors. The BSTS framework uses a Bayesian approach to incorporate prior knowledge and quantify uncertainty around the estimates, making it highly reliable for causal inference in dynamic systems.
Many variant and innovative approaches of causal inference for time series have been developed in recent years (see Box 9.1). In all these variants, two considerations are very important. The first consideration is the accurate selection of control units. The choice of the donor pool is crucial to ensure that the synthetic control closely matches the treated unit’s pre‑intervention characteristics. The accurate selection is important because these methods always produce “technical” counterfactuals, as an output of a weighting method. If within the pool of control units there are members who are structurally different from the treated unit, the final estimated impact will include bias due to confounding factors. The second consideration concerns the underlying assumptions. Researchers must be mindful of the assumptions underlying SCM, such as the stability of relationships over time (meaning that all the predictors used and the outcome variable have a static relationship, an assumption that is rarely true in migration flows as shown by, e.g. (Carammia, Iacus and Wilkin, 2022[5])), and the absence of spillover effects between units which is quite likely in migration flows because of the complexity of the phenomena, the networking effects, etc.