Dear all,
I have a question concerning the correct way to combine CEM with other matching
procedures. Specifically, I am trying to match a data set with CEM, and then apply Entropy
balancing to the remaining sample
(
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1904869). It seems such two-step
balancing is hinted at in both Iacus, King, Porro (2011) and Hainmuller (2012)
My questions concerns the correct way to us the weights in regressions after both
procedures are done.
My intuition says that this is basically a two-step sampling procedure, and that the
correct way to use the weights is to multiply the weights from CEM with the weights from
Entropy (Solution A).
However, it might also be that the Entropy Balancing is overriding the weights from CEM,
and the observations should only be weighted by the weights from Entropy (Solution B)
Have any of you investigated this in a more systematic/formal fashion?
All the best,
Haakon Gjerløw | Phd fellow
Department of Political Science | University of Oslo