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Bounding errors

RD as first stage in 2SLS

han.he＠college.harvard.edu

25 Apr 2010 25 Apr '10

3:14 p.m.

Hey, I am using MatchIt to reduce model dependency. I matched on change in GDP, developed/undeveloped, new democracy/old democracy, etc. leaving the treatment as government budget deficit. However, GDP is still significant in my regression. Why does this happen? Shouldn't matching isolate the treatment variable? Thanks! Best, Han Harvard College Class of 2013 614-329-1324

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king＠harvard.edu

25 Apr 25 Apr

3:17 p.m.

if you exact match, then it will have a coeff of 0. if you only approximately match, then it will reduce the size of the coeff and reduce model dependence, but not necessarily to zero. Gary --- http://gking.harvard.edu On Sun, Apr 25, 2010 at 3:14 PM, Han He <han.he at college.harvard.edu> wrote:

Hey, I am using MatchIt to reduce model dependency. I matched on change in GDP, developed/undeveloped, new democracy/old democracy, etc. leaving the treatment as government budget deficit. However, GDP is still significant in my regression. Why does this happen? Shouldn't matching isolate the treatment variable? Thanks! Best, Han Harvard College Class of 2013 614-329-1324 _______________________________________________ gov2001-l mailing list gov2001-l at lists.fas.harvard.edu http://lists.fas.harvard.edu/mailman/listinfo/gov2001-l

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han.he＠college.harvard.edu
king＠harvard.edu