Propensity Score Matching Regression …

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Propensity Score MatchingRegression DiscontinuityLimited Dependent VariablesChristopher F BaumEC 823: Applied EconometricsBoston College, Spring 2013Christopher F Baum (BC / DIW)PSM, RD, LDVBoston College, Spring 20131 / 99Propensity Score matchingPropensity Score matchingPolicy evaluation seeks to determine the effectiveness of a particularintervention. In economic policy analysis, we rarely can work withexperimental data generated by purely random assignment of subjectsto the treatment and control groups. Random assignment, analogousto the randomized clinical trial in medicine, seeks to ensure thatparticipation in the intervention, or treatment, is the only differentiatingfactor between treatment and control non-experimental economic data, we observe whether subjectswere treated o

Propensity score matching The key concern is that of similarity. How can we find individuals who are similar on all observable characteristics in order to match treated

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