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  • Help on PSMATCH2

    Hello,

    I am trying to estimate the impact of a scheme using propensity scoring matching and difference and difference. I am calculating the propensity scores using the psmatch2 command and using the weights generated (from psmatch2) as weights in my DID command. I need help understanding if I am doing things correctly. Even though there is huge documentation on psmatch2, unfortunately, there is not much available on how to conduct DID using propensity scores.

    My command looks as follows:
    Code:
    psmatch2 matchingvar, ties
    Code:
    xtreg dependentvar  treatmentvar independentvar i.Year [aw=_weight], fe vce(cluster district)
    where _weight is the weight generated through the psmatch2 command.

    Would greatly appreciate input on this!

    Regards,
    Kanika
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