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SSRN Electronic Journal
Article . 2001 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2001
Data sources: EconStor
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The Propensity Score: A Means to an End

Authors: Augurzky, Boris; Schmidt, Christoph M.;

The Propensity Score: A Means to an End

Abstract

Propensity score matching is a prominent strategy to reduce imbalance in observational studies. However, if imbalance is considerable and the control reservoir is small, either one has to match one control to several treated units or, alternatively, discard many treated persons. The first strategy tends to increase standard errors of the estimated treatment effects while the second might produce a matched sample that is not anymore representative of the original one. As an alternative approach, this paper argues to carefully reconsider the selection equation upon which the propensity score estimates are based. Often, all available variables that rule the selection process are included into the selection equation. Yet, it would suffice to concentrate on only those exhibiting a large impact on the outcome under scrutiny, as well. This would introduce more stochastic noise making treatment and comparison group more similar. We assess the advantages and disadvantages of the latter approach in a simulation study.

Keywords

Stichprobenverfahren, ddc:330, C14, C15, balance of relevant covariates, simulation study, Mikroökonometrie, Theorie, Estimation of the propensity score

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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
39
Top 10%
Top 10%
Average
bronze