A Primer for Applying Propensity-Score Matching
AbstractThe use of microeconometric techniques to estimate the effects of development policies has become a common approach not only for scholars, but also for policy-makers engaged in designing, implementing and evaluating projects in different fields. Among these techniques, Propensity-Score Matching (PSM) is increasingly applied in the policy evaluation community. This technical note provides a guide to the key aspects of implementing PSM methodology for an audience of practitioners interested in understanding its applicability to specific evaluation problems. The note summarizes the basic conditions under which PSM can be used to estimate the impact of a program and the data required. It explains how the Conditional Independence Assumption, combined with the Overlap Condition, reduces selection bias when participation in a program is determined by observable characteristics. It also describes different matching algorithms and some tests to assess the quality of the matching. Case studies are used throughout to illustrate important concepts in impact evaluation and PSM. In the annexes, the note provides an outline of the main technical aspects and a list of statistical and econometric software for implementing PSM.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD) in its series SPD Working Papers with number 1005.
Date of creation: Aug 2010
Date of revision:
Policy Evaluation; Microeconometrics; Propensity-Score Matching; Average Treatment Effect on the Treated; Development Effectiveness;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kristin Forbes & Marcel Fratzscher & Roland Straub, 2013. "Capital Controls and Macroprudential Measures: What Are They Good For?," Discussion Papers of DIW Berlin 1343, DIW Berlin, German Institute for Economic Research.
- Jerrett Jones, 2013. "Examining the Relationship between Paternal Incarceration, Maternal Stress, and Harsh Parenting Behaviors," Working Papers 1444, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
- M. Filippini & L. Ortiz & G. Masiero, 2013.
"Assessing the impact of national antibiotic campaigns in Europe,"
The European Journal of Health Economics,
Springer, vol. 14(4), pages 587-599, August.
- Marco Passarella, 2012. "Systemic financial fragility and the monetary circuit: a stock-flow consistent Minskian approach," Working Papers 1202, Department of Economics and Technology Management, University of Bergamo.
- Thomas J. Cooke, 2013. "All tied up: Tied staying and tied migration within the United States, 1997 to 2007," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(30), pages 817-836, October.
- Gustavo A. Crespi & Alessandro Maffioli & Pierre Mohnen & Gonzalo Vázquez, 2011. "Evaluating the Impact of Science, Technology and Innovation Programs: a Methodological Toolkit," SPD Working Papers 1104, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
- Liverpool-Tasie, Lenis Saweda, 2012. "Did using input vouchers improve the distribution of subsidized fertilizer in Nigeria?: The case of Kano and Taraba states," IFPRI discussion papers 1231, International Food Policy Research Institute (IFPRI).
- Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour ? Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
- Omar Zambrano & Marcos Robles & Denisse Laos, 2014. "Global boom, local impacts: Mining revenues and subnational outcomes in Peru 2007-2011," IDB Publications 85133, Inter-American Development Bank.
- Stijn Broecke, 2013. "Tackling graduate unemployment in North Africa through employment subsidies: A look at the SIVP programme in Tunisia," IZA Journal of Labor Policy, Springer, vol. 2(1), pages 1-19, December.
- Maria S. Floro & Javier Bronfman, 2012. "How Well have Social Protection Schemes in Chile Reduced Household Vulnerability?," Working Papers 2012-03, American University, Department of Economics.
- Diana Warren & John P. Haisken-DeNew, 2013. "Early Bird Catches the Worm: The Causal Impact of Pre-school Participation and Teacher Qualifications on Year 3 National NAPLAN Cognitive Tests," Melbourne Institute Working Paper Series wp2013n34, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.