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st: Doubt about level option in pscore.ado


From   Carlos Tendilla González <[email protected]>
To   <[email protected]>
Subject   st: Doubt about level option in pscore.ado
Date   Wed, 4 Dec 2013 10:23:05 -0600

Dear Statalist,

I am working with pscore.ado, a user written command from Becker and Ichino. 

I want to know exactly what happens when you change the level option, like this:

. pscore totalformal familiar casado edad edad2 hombre escolaridad sector1 sector2 sector3 sector4 sector5 sector6 sector7 sector8 sector9 sector10 sector11 sector12, pscore(ps) blockid(block) level(.00000001) numblo(10)

. pscore totalformal familiar casado edad edad2 hombre escolaridad sector1 sector2 sector3 sector4 sector5 sector6 sector7 sector8 sector9 sector10 sector11 sector12, pscore(ps) blockid(block) level(.1) numblo(10)

I found that when you decrease the level, the balance is better. I think this option decreases the significance level for the p-value of the t-test for equality of means in control and treatment group. So, I should not decrease to much this level. If what I think is right, what is the optimal level of significance?

Regards,

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