AStA Advances in Statistical Analysis

, Volume 91, Issue 3, pp 279–290

On the inefficiency of propensity score matching

Original Paper

DOI: 10.1007/s10182-007-0035-0

Cite this article as:
Frölich, M. AStA (2007) 91: 279. doi:10.1007/s10182-007-0035-0

Abstract

Propensity score matching is now widely used in empirical applications for estimating treatment effects. Propensity score matching (PSM) is preferred to matching on X because of the lower dimension of the estimation problem. In this note, however, it is shown that PSM is inefficient compared to matching on X. Hence, matching on X should be considered as a serious alternative.

Keywords

Propensity score matching Average treatment effect Efficiency  

Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  1. 1.SIAWUniversität St. GallenSt. GallenSwitzerland