Myoung-jae Lee

in Matching, Regression Discontinuity, Difference in Differences, and Beyond

Published in print June 2016 | ISBN: 9780190258733
Published online August 2016 | e-ISBN: 9780190258771 | DOI:

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If treatment and control groups differ in observed covariates X, then the difference in outcome Y cannot be attributed to the difference in the treatment D. One solution is to compare individuals sharing the same value of X. Selecting such individuals is matching. With a high-dimensional X, the dimension problem makes it hard to find matched individuals, but propensity score matching can overcome the problem. The values thatXcan take on should overlapwell across the two groups to avoid the support problem inmatching. Although intuitive,matching is a nonparametric procedure in its nature, which requires a number of decisions to be made by the user.

Keywords: matching; dimension problem; support problem; propensity score; covariate balance

Chapter.  19688 words. 

Subjects: Econometrics and Mathematical Economics

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