Hello,
I ran a psmatch procedure to match companies by size and roa in the same industry class (Fama-French 28) and it returned some matches with a propensity score of exactly 1.
I don't know why this has happened, can you help?
My code below:
proc psmatch data=m9 region=treated;
class treat ff48;
psmodel treat (treated="1")= size ff48;
match distance=lps method=Greedy(k=1) exact=ff48 caliper=0.5;
assess lps var=(size roa)/ weight=none plots=(boxplot barchart);
output out(obs=match)=OutEx4_&y matchid=_MatchID;
run;
Thank you in advance,
Candice
Propensity Scores propensity score matching code