Question

The major difference between propensity score matching and synthetic control is that: a. the way in...

The major difference between propensity score matching and synthetic control is that:

a. the way in which the control groups are identified is different.

  

b. synthetic control uses logit regression to match individuals in the treatment group with individuals with similar characteristics to create a control group.

  

c. propensity score matching is an application of the methodology used in the comparative case study.

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Answer #1

The answer is (a) the way in which the control groups are identified is different. This is because in propensity score matching both pre and post-treatment time series of data is used while synthetic control uses only pre-treatment values.

(b) is false asit is propensity score matching uses logit regression to match individuals in the treatment group with individuals with similar characteristics to create a control group.

(c) is false as it is synthetic controls that is an application of the methodology used in the comparative case study

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