Implementing Propensity Score Matching Estimators with …

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1Implementing Propensity Score Matching Estimatorswith STATABarbara SianesiUniversity College LondonandInstitute for Fiscal StudiesE-mail: forUK stata Users Group, VII MeetingLondon, May 2001 2BACKGROUND: THE evaluation PROBLEMPOTENTIAL-OUTCOME APPROACHEvaluating the causal effect of some treatment on some outcome Yexperienced by units in the population of the outcome of unit i if i were exposed to the treatmentY0i the outcome of unit i if i were not exposed to the treatmentDi {0, 1} indicator of the treatment actually received by unit iYi = Y0i + Di (Y1i Y0i) the actually observed outcome of unit iX the set of pre-treatment characteristicsCAUSAL EFFECT FOR UNIT iY1i Y0iTHE FUNDAMENTAL PROBLEM OF CAUSAL INFERENCE impossible to observe the individual treatment effect impossible to make causal inference without making generallyuntestable assumptions3Under some assumptions:estimate the average treatment effect at the population, or at a sub-population, level.

Implementing Propensity Score Matching Estimators with STATA Barbara Sianesi University College London and Institute for Fiscal Studies ... Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme”, Review of Economic Studies, 64, 605-654.

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