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Propensity Score Matching with Replacement Using Weighted Least Squares: SAS Code and Macros

43 Pages Posted: 10 May 2017  

Steven Utke

University of Connecticut - Department of Accounting

Date Written: May 8, 2017

Abstract

While propensity score matching (PSM) is increasingly common in finance and accounting research (Roberts and Whited 2013; Shipman, Swanquist, and Whited 2017), coding PSM in SAS can be tedious, with limited coding resources available to researchers. This is especially true when undertaking PSM with replacement, which is preferred in many settings (Roberts and Whited 2013) and which also serves as a worthwhile robustness test (Shipman et al. 2017). In this paper, I provide comprehensive macros for PSM in SAS to significantly increase the speed of coding, with a particular focus on PSM with replacement. While this paper provides the tools for undertaking PSM, I encourage researchers to carefully consider the appropriateness of PSM for their study (e.g., King and Nielsen 2016) before using these tools.

Keywords: Propensity Score Matching, Weighted Least Squares, SAS

JEL Classification: C10

Suggested Citation

Utke, Steven, Propensity Score Matching with Replacement Using Weighted Least Squares: SAS Code and Macros (May 8, 2017). Available at SSRN: https://ssrn.com/abstract=2964990 or http://dx.doi.org/10.2139/ssrn.2964990

Steven Utke (Contact Author)

University of Connecticut - Department of Accounting ( email )

School of Business
Storrs, CT 06269-2041
United States

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