Isotonic propensity score matching

Xu, Mengshan and Otsu, Taisuke ORCID: 0000-0002-2307-143X (2025) Isotonic propensity score matching. Econometric Theory. ISSN 0266-4666 (In Press)

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Abstract

We propose a one-to-many matching estimator of the average treatment effect based on propensity scores estimated by isotonic regression. This approach is predicated on the assumption of monotonicity in the propensity score function, a condition that can be justified in many economic applications. We show that the nature of the isotonic estimator can help us to fix many problems of existing matching methods, including efficiency, choice of the number of matches, choice of tuning parameters, robustness to propensity score misspecification, and bootstrap validity. As a by-product, a uniformly consistent isotonic estimator is developed for our proposed matching method.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	27 May 2025 11:24
Last Modified:	27 May 2025 11:48
URI:	http://eprints.lse.ac.uk/id/eprint/128178

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