xuyiqing / gsynth

Generalized Synthetic Control Method
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Optimal cross-validation r<2 with force = two-way #34

Open Oakaco opened 4 years ago

Oakaco commented 4 years ago

Within the framework of the paper, r is the total number of lambda*f terms. If force = "two-way" is on, I would think that the first and second factors are the unit and time fixed effects, and so r must be 2 or higher, but cross validation finds r=0 or r=1 sometimes. Does the "r" found by cross validation indicate the number of factors IN ADDITION to the unit and fixed effects when force="two-way"?