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Credibility of propensity score matching estimates. An example from Fair Trade certification of coffee producers

Author

Listed:
  • Nicolas Lampach

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Ulrich Morawetz

    (BOKU - Universität für Bodenkultur Wien = University of Natural Resources and Life [Vienne, Autriche])

Abstract

Propensity score matching (PSM) is an increasingly popular method for evaluation studies in agricultural and development economics. However, statisticians and econometricians have stressed that results rely on untestable assumptions, and therefore, guidelines for researchers on how to improve credibility have been developed. We follow one of these guidelines with a data set analysed by other authors to evaluate the impact of Fair Trade certification on the income of coffee producers. We provide thereby a best practice example of how to evaluate the credibility of PSM estimates. We find that a thorough assessment of the assumptions made renders the data we use not suitable for a credible PSM estimation of the effects of treatment. We conclude that the debate about the impact of Fair Trade certification would greatly benefit from a detailed reporting of credibility checking.

Suggested Citation

  • Nicolas Lampach & Ulrich Morawetz, 2016. "Credibility of propensity score matching estimates. An example from Fair Trade certification of coffee producers," Post-Print hal-01724559, HAL.
    • Handle: RePEc:hal:journl:hal-01724559
    DOI: 10.1080/00036846.2016.1153795
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    Citations

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    Cited by:

    1. Ninon Sirdey & Sylvaine Lemeilleur, 2021. "Can fair trade resolve the “hungry farmer paradox”?," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(1), pages 81-106, March.
    2. Akoyi, K.T. & Mitiku, F. & Maertens, M., 2018. "Is prohibiting child labour enough? Coffee certification and child schooling in Ethiopia and Uganda," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275958, International Association of Agricultural Economists.
    3. Fikadu Mitiku & Yann De Mey & Jan Nyssen & Miet Maertens, 2017. "Do Private Sustainability Standards Contribute to Income Growth and Poverty Alleviation? A Comparison of Different Coffee Certification Schemes in Ethiopia," Sustainability, MDPI, vol. 9(2), pages 1-21, February.
    4. Lampach, Nicolas & To-The, Nguyen & Nguyen-Anh, Tuan, 2021. "Technical efficiency and the adoption of multiple agricultural technologies in the mountainous areas of Northern Vietnam," Land Use Policy, Elsevier, vol. 103(C).

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