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Using Matching to Estimate Treatment Effects: Data Requirements, Matching Metrics, and Monte Carlo Evidence

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Author Info
Zhong Zhao (China Center for Economic Research, Peking University)

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Abstract

We compare propensity-score matching methods with covariatematching estimators. We first discuss the data requirements of propensity-score matching estimators and covariate matching estimators. Then we propose two new matching metrics incorporating the treatment outcome information and participation indicator information, and discuss the motivations of different metrics. Next we study the small-sample properties of propensity-score matching versus covariate matching estimators, and of different matching metrics, through Monte Carlo experiments. Through a series of simulations, we provide some guidance to practitioners on how to choose among different matching estimators and matching metrics. Copyright (c) 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/003465304323023705
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Publisher Info
Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 86 (2004)
Issue (Month): 1 (08)
Pages: 91-107
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Handle: RePEc:tpr:restat:v:86:y:2004:i:1:p:91-107

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  1. Burgert, Derik, 2006. "Betriebliche Weiterbildung und der Verbleib Älterer im Betrieb," MPRA Paper 5742, University Library of Munich, Germany. [Downloadable!]
  2. Luis Marcano, 2005. "Atacando Pobreza: Evaluación del Programa Fondo de Inversión Social de Panamá," OVE Working Papers 0205, Inter-American Development Bank, Office of Evaluation and Oversight (OVE). [Downloadable!]
  3. Bia, Michela, 2007. "The Propensity Score method in public policy evaluation: a survey," P.O.L.I.S. department's Working Papers 79, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  4. Jochen Kluve & Boris Augurzky, 2005. "Assessing the performance of matching algorithms when selection into treatment is strong," RWI Discussion Papers 0021, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
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  5. Arntz, Melanie & Wilke, Ralf A & Winterhager, Henrik, 2006. "Regionenmatching im Rahmen der Evaluation der Experimentierungsklausel des § 6c SGB II : methodische Vorgehensweise und Ergebnisse," ZEW Discussion Papers 06-61, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Cerulli Giovanni, 2008. "Modelling and measuring the effects of public subsidies on business R&D: theoretical and econometric issues," CERIS Working Paper 200803, Institute for Economic Research on Firms and Growth - Moncalieri (TO). [Downloadable!]
  7. Robert Poppe, 2007. "The Matching Approach on Expenditure Patterns of Migrant Households: Evidence from Moldova," Kiel Advanced Studies Working Papers 444, Kiel Institute for the World Economy. [Downloadable!]
  8. Bartram, Söhnke M. & Brown, Gregory W. & Conrad, Jennifer, 2006. "The Effects of Derivatives on Firm Risk and Value," MPRA Paper 9831, University Library of Munich, Germany, revised 24 Jul 2008. [Downloadable!]
  9. Zhong Zhao, 2005. "Sensitivity of Propensity Score Methods to the Specifications," IZA Discussion Papers 1873, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  11. Miguel A. Malo & Fernando Munoz-Bullon, 2005. "Job Matching Quality Effects Of Employment Promotion Measures For People With Disabilities," Business Economics Working Papers wb055315, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
  12. Miguel Angel Malo & Fernando Muñoz-Bullón, 2006. "Employment promotion measures and the quality of the job match for persons with disabilities," Hacienda Pública Española, IEF, vol. 179(4), pages 79-111, September. [Downloadable!]
  13. Cerulli Giovanni & Poti' Bianca, 2008. "Evaluating the Effect of Public Subsidies on firm R&D activity: an Application to Italy Using the Community Innovation Survey," CERIS Working Paper 200809, Institute for Economic Research on Firms and Growth - Moncalieri (TO). [Downloadable!]
  14. Peter R. Mueser & Kenneth R. Troske & Alexey Gorislavsky, 2006. "Using State Administrative Data to Measure Program Performance," Working Papers 0702, Department of Economics, University of Missouri. [Downloadable!]
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