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Some Practical Guidance for the Implementation of Propensity Score Matching

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dc.creator Caliendo, Marco
dc.creator Kopeinig, Sabine
dc.date 2005
dc.date.accessioned 2013-10-16T06:59:32Z
dc.date.available 2013-10-16T06:59:32Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18336
dc.identifier ppn:487850807
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18336
dc.description Propensity Score Matching (PSM) has become a popular approach to estimate causal treatment effects. It is widely applied when evaluating labour market policies, but empirical examples can be found in very diverse fields of study. Once the researcher has decided to use PSM, he is confronted with a lot of questions regarding its implementation. To begin with, a first decision has to be made concerning the estimation of the propensity score. Following that one has to decide which matching algorithm to choose and determine the region of common support. Subsequently, the matching quality has to be assessed and treatment effects and their standard errors have to be estimated. Furthermore, questions like `what to do if there is choice-based sampling?' or `when to measure effects?' can be important in empirical studies. Finally, one might also want to test the sensitivity of estimated treatment effects with respect to unobserved heterogeneity or failure of the common support condition. Each implementation step involves a lot of decisions and different approaches can be thought of. The aim of this paper is to discuss these implementation issues and give some guidance to researchers who want to use PSM for evaluation purposes.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 485
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject H43
dc.subject C40
dc.subject ddc:330
dc.subject Propensity Score Matching
dc.subject Implementation
dc.subject Evaluation
dc.subject Sensitivity
dc.title Some Practical Guidance for the Implementation of Propensity Score Matching
dc.type doc-type:workingPaper


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