Testing for covariate balance using quantile regression and resampling methods
Consistency of propensity score matching estimators hinges on the propensity score's ability to balance the distributions of covariates in the pools of treated and nontreated units. Conventional balance tests merely check for differences in covariates' means, but cannot account for differences in higher moments. Specification tests constitute an alternative, but might reject misspecified, but yet balancing propensity score models. This paper proposes balance tests based on (i) quantile regression to check for differences in the distributions of continuous covariates and (ii) resampling methods to estimate the distributions of the proposed Kolmogorov-Smirnov and Cramer-von-Mises-Smirnov test statistics. Simulations suggest that the tests capture imbalances related to higher moments when conventional balance tests fail to do so and correctly keep misspecified, but balancing propensity scores when specification tests reject the null.
|Date of creation:||Jun 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Dufourstrasse 50, CH - 9000 St.Gallen|
Phone: +41 71 224 23 25
Fax: +41 71 224 31 35
Web page: http://www.seps.unisg.ch/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zhao, Zhong, 2005.
"Sensitivity of Propensity Score Methods to the Specifications,"
IZA Discussion Papers
1873, Institute for the Study of Labor (IZA).
- Zhao, Zhong, 2008. "Sensitivity of propensity score methods to the specifications," Economics Letters, Elsevier, vol. 98(3), pages 309-319, March.
- Lawrence M. Berger & Jennifer Hill & Jane Waldfogel, 2005. "Maternity leave, early maternal employment and child health and development in the US," Economic Journal, Royal Economic Society, vol. 115(501), pages F29-F47, 02.
- Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003.
"Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score,"
Econometric Society, vol. 71(4), pages 1161-1189, 07.
- Guido Imbens, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometric Society World Congress 2000 Contributed Papers 1166, Econometric Society.
- Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," NBER Technical Working Papers 0251, National Bureau of Economic Research, Inc.
- Abadie A., 2002. "Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 284-292, March.
- Jyotsna Jalan & Martin Ravallion, 2000.
"Estimating the Benefit Incidence of an Antipoverty Program by Propensity Score Matching,"
Econometric Society World Congress 2000 Contributed Papers
0873, Econometric Society.
- Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
- Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008.
"From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
- Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," IZA Discussion Papers 2149, Institute for the Study of Labor (IZA).
- Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," CEPR Discussion Papers 5736, C.E.P.R. Discussion Papers.
- White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
- Li, Qi & Maasoumi, Esfandiar & Racine, Jeffrey S., 2009.
"A nonparametric test for equality of distributions with mixed categorical and continuous data,"
Journal of Econometrics,
Elsevier, vol. 148(2), pages 186-200, February.
- Qi Li & Esfandiar Maasoumi & Jeffrey S. Racine, 2008. "A Nonparametric Test for Equality of Distributions with Mixed Categorical and Continuous Data," Emory Economics 0805, Department of Economics, Emory University (Atlanta).
- Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004.
"Evaluating the Employment Impact of a Mandatory Job Search Program,"
Journal of the European Economic Association,
MIT Press, vol. 2(4), pages 569-606, 06.
- Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
- Torsten Persson, 2001. "Currency unions and trade: how large is the treatment effect?," Economic Policy, CEPR;CES;MSH, vol. 16(33), pages 433-462, October.
- Breusch, T.S. & Pagan, A.R., .
"The Lagrange multiplier test and its applications to model specification in econometrics,"
CORE Discussion Papers RP
412, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 239-253.
- Shaikh, Azeem M. & Simonsen, Marianne & Vytlacil, Edward J. & Yildiz, Nese, 2009. "A specification test for the propensity score using its distribution conditional on participation," Journal of Econometrics, Elsevier, vol. 151(1), pages 33-46, July.
- Böckerman, Petri & Ilmakunnas, Pekka, 2007.
"Unemployment and self-assessed health: Evidence from panel data,"
1798, University Library of Munich, Germany.
- Petri Böckerman & Pekka Ilmakunnas, 2009. "Unemployment and self-assessed health: evidence from panel data," Health Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 161-179.
- James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
- Hayfield, Tristen & Racine, Jeffrey S., 2008. "Nonparametric Econometrics: The np Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i05).
When requesting a correction, please mention this item's handle: RePEc:usg:dp2010:2010-18. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martina Flockerzi)
If references are entirely missing, you can add them using this form.