Statistical matching using propensity scores: Theory and application to the analysis of the distribution of income and wealth

Abstract

This article considers the usefulness of statistical matching using propensity scores in carrying out economic research. We include an application of the procedure to a statistical match between the 2001 Survey of Consumer Finance (SCF) and the 2002 Annual Demographic Supplement (ADS) of the Current Population Survey (CPS) data sets to demonstrate the procedure and results of the matching. Challenges facing the use of this technique such as the distribution of weights are discussed in the conclusion.

Quality of Match for Statistical Matches Used in the Development of the Levy Institute Measure of Time and Consumption Poverty (LIMTCP) for Ghana and Tanzania

“…This strategy often relies on a rank imputation, using broad strata variables to avoid undesirable matches. 3 This paper uses the methodology proposed in Kum and Masterson (2010), which has been used in the estimation of the Levy Institute Measure of Economic Well-Being (LIMEW) (Wolff and Zacharias 2003) and…”

“…The hot deck matching uses ranked information based on some auxiliary information such as the propensity score. For further details on the matching procedure, seeKum and Masterson (2010).…”

Gender, Low-Paid Status, and Time Poverty in Urban China

“…We statistically match the data for analysis from the 2008 CTUS and the 2008 CHIP using a procedure developed by Hyunsub Kum and Thomas Neal Masterson (2010). 7 As major disparities exist on the level of economic development across provinces, ensuring that we match the observations to the correct province is important.…”

The Sources and Methods Used in the Creation of the Levy Institute Measure of Economic Well-Being for the United States, 1959–2013

“…For a technical description and results of our matching algorithm, seeKum and Masterson (2010). For documentation of the statistical matches used in the production of the LIMEW estimates for 1992 and 2007, seeMasterson (2010); for 2010, see Rios-Avila (2014); for 2013, see Rios-Avila (forthcoming).…”