Propensity Score Matching

Treatment evaluation is the estimation of the average effect of a program or treatment on the outcome of interest. A comparison of outcomes is made between treated and control groups. Propensity score matching is used when a group of subjects receive a treatment and we’d like to compare their outcomes with the outcomes of a control group. Examples include estimating the effects of a training program on job performance or the effects of a government program targeted at helping particular schools.

Handouts, Programs, and Data

Propensity Score Matching

Propensity Score Matching Example

Propensity Score Matching Stata Program and Output

Propensity Score Matching in Stata.do

matching_earnings.dta

Propensity Score Matching R Program and Output

Propensity Score Matching in R.R

matching_earnings.csv

Propensity score matching: topics covered

  • Propensity score methodology

    • Treated and control groups

    • Probit/logit models to estimate propensity

    • Matching methods for treated and controlled observations

    • Treatment effects estimation

  • Assumptions in propensity score matching

  • Difference-in-differences models