Understanding the Difference Between Difference-in-Differences and Propensity Score Matching: A Comparative Overview
In the realm of causal inference and program evaluation, two widely employed methodologies stand out: Difference-in-Differences (DID) and Propensity Score Matching (PSM). These techniques aim to uncover causal relationships from observational data, but they operate on different principles and assumptions. Let’s delve into the key aspects that differentiate DID and PSM, and explore when each […]