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Radius matching on the propensity score with bias adjustment: tuning parameters and finite sample behaviour

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  • Martin Huber

    ()

  • Michael Lechner

    ()

  • Andreas Steinmayr

    ()

Abstract

Using a simulation design that is based on empirical data, a recent study by Huber et al. (J Econom 175:1–21, 2013 ) finds that distance-weighted radius matching with bias adjustment as proposed in Lechneret et al. (J Eur Econ Assoc 9:742–784, 2011 ) is competitive among a broad range of propensity score-based estimators used to correct for mean differences due to observable covariates. In this companion paper, we further investigate the finite sample behaviour of radius matching with respect to various tuning parameters. The results are intended to help the practitioner to choose suitable values of these parameters when using this method, which has been implemented in the software packages GAUSS, STATA and R. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Martin Huber & Michael Lechner & Andreas Steinmayr, 2015. "Radius matching on the propensity score with bias adjustment: tuning parameters and finite sample behaviour," Empirical Economics, Springer, vol. 49(1), pages 1-31, August.
  • Handle: RePEc:spr:empeco:v:49:y:2015:i:1:p:1-31 DOI: 10.1007/s00181-014-0847-1
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    References listed on IDEAS

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    Cited by:

    1. Knaus, Michael C. & Otterbach, Steffen, 2016. "Work Hour Mismatch and Job Mobility: Adjustment Channels and Resolution Rates," IZA Discussion Papers 9735, Institute for the Study of Labor (IZA).
    2. Caliendo, Marco & Künn, Steffen & Weißenberger, Martin, 2016. "Personality traits and the evaluation of start-up subsidies," European Economic Review, Elsevier, vol. 86(C), pages 87-108.
    3. repec:eee:csdana:v:115:y:2017:i:c:p:91-102 is not listed on IDEAS
    4. Iqbal, Hamzah & Krumer, Alex, 2017. "Discouragement Effect and Intermediate Prizes in Multi-Stage Contests: Evidence from Tennis’s Davis Cup," Economics Working Paper Series 1719, University of St. Gallen, School of Economics and Political Science.
    5. Schmidl, Ricarda, 2015. "The Effectiveness of Early Vacancy Information in the Presence of Monitoring and ALMP," IZA Discussion Papers 9575, Institute for the Study of Labor (IZA).
    6. Kongstad, L.P. & Mellace, G. & Olsen, K.R., 2016. "Can the use of Electronic Health Records in General Practice reduce hospitalizations for diabetes patients? Evidence from a natural experiment," Health, Econometrics and Data Group (HEDG) Working Papers 16/25, HEDG, c/o Department of Economics, University of York.
    7. Manuela Deidda & Adriana Di Liberto & Marta Foddi & Giovanni Sulis, 2015. "Employment subsidies, informal economy and women’s transition into work in a depressed area: evidence from a matching approach," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    8. Frölich, Markus & Huber, Martin & Wiesenfarth, Manuel, 2017. "The finite sample performance of semi- and non-parametric estimators for treatment effects and policy evaluation," Computational Statistics & Data Analysis, Elsevier, pages 91-102.
    9. Adrian Hille, 2015. "How a Universal Music Education Program Affects Time Use, Behavior, and School Attitude," SOEPpapers on Multidisciplinary Panel Data Research 810, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Lukas Fervers, 2016. "Fast track to the labour market or highway to hell? The effect of activation policies on quantity and quality of labour market integration," IAW Discussion Papers 125, Institut für Angewandte Wirtschaftsforschung (IAW).
    11. Cohen-Zada, Danny & Krumer, Alex & Shapir, Offer Moshe, 2017. "Take a Chance on ABBA," IZA Discussion Papers 10878, Institute for the Study of Labor (IZA).
    12. Hagen, Tobias, 2016. "Econometric Evaluation of a Placement Coaching Program for Recipients of Disability Insurance Benefits in Switzerland," Annual Conference 2016 (Augsburg): Demographic Change 145736, Verein für Socialpolitik / German Economic Association.
    13. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series: Business and Law 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    14. Bodory, Hugo & Camponovo, Lorenzo & Huber, Martin & Lechner, Michael, 2016. "The Finite Sample Performance of Inference Methods for Propensity Score Matching and Weighting Estimators," IZA Discussion Papers 9706, Institute for the Study of Labor (IZA).
    15. repec:eee:stapro:v:131:y:2017:i:c:p:72-77 is not listed on IDEAS

    More about this item

    Keywords

    Propensity score matching; Radius matching; Selection on observables; Empirical Monte Carlo study; Finite sample properties; C21;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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