infonet-economy

Using a simulation design that is based on empirical data, a recent study by Huber, Lechner and Wunsch (2012) finds that distance-weighted radius matching with bias adjustment as proposed in Lechner, Miquel and Wunsch (2011) is competitive among a broad range of propensity score-based estimators used to correct for mean differences due to observable covariates. In this paper, we further investigate the finite sample behaviour of radius matching with respect to various tuning parameters. The results are intended to help the practitioner to choose suitable values of these parame¬ters when using this method, which has been implemented as "radiusmatch" command in the software packages GAUSS, STATA and the R package "radiusmatching".