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  • Propensity Score Matching and Interaction Term

    Hi statalisters,

    I am currently doing PSM for my variable VISIT. However, my coefficient of interest is that of the interaction term VISIT*BENCH, where BENCH is an indicator variable. The first code is for my main analysis. However, I am not very sure whether the second code is stated in a right way to do PSM for my research setting. Any comments will be greatly appreciated.

    Code:
    reg Ab_RD c.VISIT##i.BENCH controls i.year i.industry_iden, vce(cluster firm_iden)
    Code:
    psmatch2 VISIT_dummy BENCH controls i.year i.industry_iden, outcome(Ab_RD) n(1) ate ties logit common caliper (0.25)
    Cheers
    Kaiyu
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