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  • Using diff command with PSM for an unbalanced panel

    Hello!

    I wanted to use the diff command to produce kernel propensity score diff-in-diff estimates.

    However, the dataset I am using is an unbalanced panel and therefore I am not sure how to go about it.

    I tried the following two versions of code:

    1) diff outcome, t(treatment) p(time) cov(`controls') kernel id(ID)
    2) diff outcome, t(treatment) p(time) cov(`controls') kernel rcs id(ID) where rcs is repeated cross section

    I am getting a sensible output for 2) but for 1) the output looks like this:

    Click image for larger version

Name:	Result 1).png
Views:	1
Size:	23.5 KB
ID:	1706067


    any idea why this is happening?

    My larger question is when we combine propensity score matching with diff-in-diff, is the panel nature of the data preserved while matching? What difference does the rcs option make in the diff command?

    Will be grateful for any sort of help - thanks in advance!

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