[Limdep Nlogit List] PSM estimation defaults

Jill Caviglia-Harris jlcaviglia-harris at salisbury.edu
Sat Sep 12 05:36:52 EST 2009

LimDep Users Group:
I recently posted a question about the kernel PSM methodology used in
LimDep but have not received a response, perhaps with further detail
this can be addressed….  My question is about the default setting in
LimDep.  It’s my understanding that there are many different variations
on kernel, including different ways to set bandwidth and to "trim"
treated observations that are off-support  (Frolich 2004; Calienddo and
Kopeinig 2005).  Based on recent estimation results it appears that
LimDep does trim the results – in other words does not use every one of
the treated observations in estimating the ATT.  I assume the default
was no trimming would be done – but this appears to be a false
assumption.  The LimDep manual states that the default is a bandwidth of
0.06 (E32-3; E32-20) but no information is provided on trimming.  Anyone
have insight on this?
Thanks.  -Jill
Jill Caviglia-Harris
Associate Professor
Economics and Finance Department
Salisbury University
Salisbury, MD 21801
(410) 548-5591

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