PROPENSITY SCORE MATCHING AND ALTERNATIVE APPROACH TO INDIVIDUALS MATCHING FOR COUNTERFACTUAL EVALUATION PURPOSES

The main goal of this paper is to provide brief explanation how the assignment problem can be used for counterfactual impact evaluation based on individuals matching. First part of this paper provides brief explanation of basic principles of counterfactual impact evaluation methods with focus on propensity score matching methods. Following part is dedicated to alternative approach to individuals matching which is using the assignment problem and its extension for better treatment and control group alignment. This part consists of two sections. The first one is theoretical and covers mathematical model extension. The second section is practical and applies theoretical part on real data.