Hi, everyone
I have a propensity score matching (PSM) problem and am desperately finding the solution.
To obtain the matching scores, I have to regress a dependent variable Y1 (treatment: 1 vs. control: 0) on a series of independent and control variables including X1, X2, and X3, etc. Then I have to identify the 5 (or other numbers) nearest neighbor matches for each treatment firm with replacement, form a new dataset, and conduct another regression analysis where the dependent variable is a new one such as firm performance Y2, the independent variable is Y1 (i.e., the prior dependent variable), and the control variables are now X4, X5, and X6, etc.
Does anyone know how to perform these procedures using STATA software language or drop-down menu? Thank you for your help. I appreciate it very much. Look forward to hearing from you.
Best,
Andy
I have a propensity score matching (PSM) problem and am desperately finding the solution.
To obtain the matching scores, I have to regress a dependent variable Y1 (treatment: 1 vs. control: 0) on a series of independent and control variables including X1, X2, and X3, etc. Then I have to identify the 5 (or other numbers) nearest neighbor matches for each treatment firm with replacement, form a new dataset, and conduct another regression analysis where the dependent variable is a new one such as firm performance Y2, the independent variable is Y1 (i.e., the prior dependent variable), and the control variables are now X4, X5, and X6, etc.
Does anyone know how to perform these procedures using STATA software language or drop-down menu? Thank you for your help. I appreciate it very much. Look forward to hearing from you.
Best,
Andy
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