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st: RE: RES: psmatch2

From   "Rajesh Tharyan" <[email protected]>
To   <[email protected]>
Subject   st: RE: RES: psmatch2
Date   Tue, 18 Dec 2007 12:32:00 -0000


Thanks very much. I think I will need to read up a bit more on this..thanks


-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Henrique Neder
Sent: 16 December 2007 14:19
To: [email protected]
Subject: st: RES: psmatch2


You have to define an outcome variable and the variables that are the

In the following example:

psmatch2 trade carac1 carac2, out(outvar)

trade is the variable that define the treatment group,
carac1 and carac2 are the variables that define the characteristics of the
outvar are the outcome variable.

The matching are made using carac1 and carac2 through the groups (training =
0 and training = 1).  

The program estimate a probit model, calculate a propensity score and make
the matching based in this propensity. Trade is the dependent variable in
the probit model. Carac1 e carac2 are the covariates in this model. You have
the logit option, too. If you select the Mahalanobis option you don't need
to define the carac1 and carac2 variables as covariates and the sintax is:

psmatch2 trade, mahalanobis(carac1 carac2) out(outvar)    

I think that nearest neighbor is the default matching criteria.

I hope to help with this.


-----Mensagem original-----
De: [email protected]
[mailto:[email protected]] Em nome de Rajesh Tharyan
Enviada em: domingo, 16 de dezembro de 2007 11:22
Para: [email protected]
Assunto: st: psmatch2

Hi all,

I have a file set up as follows

coname	mcap	btom	trade
A		35	.6	1
B		30	.1	0
C		32	.4	0
D		45	.3	0
E		56	.45	0
F		75	.23	0
G		26	.43	0
H		47	.35	0
I		25	.9	0

How can I use the propensity score matching technique to match the firms
for which trade=0 with firm for which trade=1, in terms of mcap and


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