Propensity Score Analysis:
Statistical Methods and
Applications (July 2009)
Shenyang Guo
Mark W. Fraser
Advanced Quantitative
Techniques in the Social
Sciences Series Volume 13
Sage Publications, Inc.
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Propensity Score Analysis describes a family of new statistical
techniques that are quite useful in estimating the effects of social and
health programs. Written in an accessible fashion, the book is intended for
social behavioral researchers who conduct intervention research and
program evaluation. It is the first of its kind to provide step-by-step
instructions for running a wide range of propensity score models with the
Stata software program. The book describes four cutting-edge methods:
sample selection models, propensity score matching, matching estimators,
and kernel-based matching estimators.
On the basis of the Neyman-Rubin counterfactual framework and the
Heckman econometric framework for causality, the authors compare and
contrast the logic, mathematical derivations, and application of the four
methods. As a base, the book briefly reviews common statistical approaches
such as OLS regression, logistic regression, matching, stratification, and
instrumental variables approaches. It also offers a clear description of new
statistical models including optimal matching, generalized boosted
regression, kernel-based local linear regression, and Rosenbaum’s sensitivity
analysis approaches. Simulations are used to illustrate the logic of simple
correction methods, and a Monte Carlo study compares the four models
under different selection bias assumptions (i.e., selection on observables
and selection on unobservables). Programs to check covariate imbalances
before and after matching and to conduct Hodges-Lehmann aligned rank
test following an optimal matching are described and demonstrated. Finally,
the book employs examples from current social research to illustrate the
application of propensity score models. Specifically, it illustrates the use of
propensity score analysis in three studies: a national longitudinal survey of
children and families in child welfare, a study of the impact of poverty on
academic achievement in childhood, and a quasi-experimental evaluation of
social and character development training in elementary schools.
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