Synthetic Control Method

[hana88]

Hi All,

I came across this journal http://www.hks.harvard.edu/fs/aabadie/ccsp.pdf which basically uses Synthetic Control Method (SCM) to estimate the difference between the impact on a variable when an event happens versus when it does not happen (well at least this is how i understand it). Another research paper that I found uses this method to estimate the impact of being a member of euro versus if it is not a member of euro (they use this on Greece if i'm not mistaken).

Hence I'm just wondering if anyone of you is familiar with SCM and could briefly explain it a bit in simpler words? Can we use this in Eviews?

Thanks in advance.