Re: difference between instrumental variable and propensity score matching approach?

Maggie, Try asking your question at sci.econ.research or sci.stat or sci.math. You will have better luck in those groups.
Mike

Maggie wrote:
hi, i'm new to this group and generally new to econometrics. i've
taken introductory econometrics and have the woodridge text which lays
out the mathematical foundations quite well.

however, could anyone please recommend an easily accessible text that
focuses on econometrics as tools for analysis? for example, i'm
currently trying to understand what are the pros and cons and
assumptions behind using the instrumental variable approach vs. the
propensity score approach. is there a way to compare the results from
these two types of estimation methods?

i'm comparing these two approaches to adjust for selection bias in an
outcome evaluation study where the dependent variable is dichotomous--
so i think it's problematic for the iv estimation, but i'm not clear
why that's the case--or can iv only be used for continous dependent
variables only?

are the co-efficients from propensity score and instrumental variable
approaches comparable to regular regression co-efficients? how?

also, is there any bona fide econometrician out there who uses SAS to
do most of their analyses? most econometricians i went to school with
tended to favor STATA or MetLab.

thanks so much and i'm looking forward to learning from this
community!

maggie

.