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pacmann.io © 2022 – Pacmann AI 85 Constructing Matched Weighted Sample: Weighting Approaches
pacmann.io © 2022 – Pacmann AI 86 Weighting Approaches in Matching ● In the matched weighted sample approach, weights are assigned to observations based on distance or propensity scores. ● The choice of how to convert distance or propensity scores into weights involves considering different approaches.
pacmann.io © 2022 – Pacmann AI 87 1. Kernel-Based Matching Estimators ● Kernel-based matching estimators use kernel functions to generate weights. ● Kernel functions assign weights to observations based on their similarity to the treated observation. ● The Epanechnikov kernel is a commonly used kernel function in matching, known for its simplicity and minimization of mean integrated squared error. The Effect Chapter 14
pacmann.io © 2022 – Pacmann AI 88 ● Take notice of the fixed range that has been directly programmed - this kernel is designed to operate only within the limits of a difference ranging from -1 to 1. ● Given the variation in scale across variables, we need a standardization to make sure all variables are treated equally. 1. Kernel-Based Matching Estimators The Effect Chapter 14

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