Propensity score matching

[kpukthua]

Hi,

I wonder if you know the algorithm to perform propensity score matching via Eviews. It is the matching procedure based on propensity scores developed by Deheja and Wahba (1999, 2002). It's used to find matching firms based on some characteristics such as age, industry, book-to-market and to control for endogeneity.

If anyone knows about its algorithm, can you please kindly advise me.

Thank you very much,
Kuntara
kpukthua@mail.sdsu.edu

[javiersan]

Hi,

I suggest that, if you have access to it, you use Stata command psmatch2 written by Barbara Sianesi (who happened to be a lecturer of mine some years ago) and E. Leuven. In fact Smith & Todd discussion about the results of Dehejia & Wahba's main paper use this procedure.


Regards,

Javier

[kpukthua]

Thanks, Javier. I will take your advice.