Announcement

Collapse
No announcement yet.
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Test: Difference-in-Difference regression - how to selecting the control group

    Hi,

    I'm writing a master thesis on the effect of a policy change on tax avoidance. The rule only applied to about 500 observations (companies) in my dataset, which in total contains around 80 000. I would like to identify a control group of about equal size.
    Relevant matching variables are the continuous variables X1 - X4 and the binary variables Z1 - Z2. The dependent variable in the succeeding difference in difference regression is the continuos variable Y.
    Is it possible to perform an excact match on the binary variables and nearest-neighbor matching or equivalent on the continuous variables? I tried teffects nnmatch but couldn't figure out how to match without replacements.

    Any help is greatly appreciated.
Working...
X