Propensity score matching and policy impact analysis : a demonstration in eviews / / B. Essama-Nssah, Research working paper Collection Title:Policy.

Format:

Book

Government document

Author/Creator:

Essama-Nssah, B. (Boniface), 1949-

Contributor:

World Bank.

Series:

Policy research working papers ; 3877.

World Bank e-Library.

Policy research working paper ; 3877

Language:

English

Subjects (All):

Estimation theory.

Policy sciences.

Other Title:

Propensity score matching and policy impact analysis

Policy research working paper vol. 3877

Place of Publication:

[Washington, D.C. : World Bank, 2006]

System Details:

data file

Summary:

"Effective development policymaking creates a need for reliable methods of assessing effectiveness. There should be, therefore, an intimate relationship between effective policymaking and impact analysis. The goal of a development intervention defines the metric by which to assess its impact, while impact evaluation can produce reliable information on which policymakers may base decisions to modify or cancel ineffective programs and thus make the most of limited resources. This paper reviews the logic of propensity score matching (PSM) and, using data on the National Support Work Demonstration, compares that approach with other evaluation methods such as double difference, instrumental variable, and Heckman's method of selection bias correction. In addition, it demonstrates how to implement nearest-neighbor and kernel-based methods, and plot program incidence curves in E-Views. In the end, the plausibility of an evaluation method hinges critically on the correctness of the socioeconomic model underlying program design and implementation, and on the quality and quantity of available data. In any case, PSM can act as an effective adjuvant to other methods. "--World Bank web site.

Notes:

Title from PDF file as viewed on 4/5/2006.

Includes bibliographical references.

Publisher Number:

10.1596/1813-9450-3877