Matching estimator is powerful, and simple
Published:
In this short article, I explain how propensity score matching works in practice using 13 lines of R codes. The article is published at Towards Data Science.
Preview: A challenge with many observational studies for obtaining causal effect is self-selection — in many cases, people choose to receive treatment for some reasons, and consequently, the treated people cannot be directly compared with the untreated people. For instance, students from rich families might be more likely to choose to attend private college. If we wish to know the causal effect of attending private college on earnings, we shall rule out (or control) the effect of family background.
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