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On the inefficiency of propensity score matching

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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.

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  1. SIAW, Universität St. Gallen, Bodanstr. 8, 9000, St. Gallen, Switzerland

    Markus Frölich

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  1. Markus Frölich
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Correspondence to Markus Frölich.

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Frölich, M. On the inefficiency of propensity score matching . AStA 91, 279–290 (2007). https://doi.org/10.1007/s10182-007-0035-0

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