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We discuss a method for improving causal inferences called “Coarsened Exact Matching” (CEM), and the new “Monotonic Imbalance Bounding” (MIB) class of matching methods from which CEM is derived. We summarize what is known about CEM and MIB, derive and illustrate several new desirable statistical properties of CEM, and then propose a variety of useful extensions. We show that CEM possesses a wide range of statistical properties not available in most other matching methods but is at the same time exceptionally easy to comprehend and use. We focus on the connection between theoretical properties and practical applications. We also make available easy-to-use open source software for R, Stata, and SPSS that implement all our suggestions.
Edited by Jonathan N. Katz
Authors' note: Open source R, Stata, and SPSS software to implement the methods described herein (called CEM) is available at http://gking.harvard.edu/cem; the CEM algorithm is also available via a standard interface offered in the R package MatchIt. Thanks to Erich Battistin, Nathaniel Beck, Matt Blackwell, Andy Eggers, Adam Glynn, Justin Grimmer, Jens Hainmueller, Ben Hansen, Kosuke Imai, Guido Imbens, Fabrizia Mealli, Walter Mebane, Clayton Nall, Enrico Rettore, Jamie Robins, Don Rubin, Jas Sekhon, Jeff Smith, Kevin Quinn, and Chris Winship for helpful comments. All information necessary to replicate the results in this paper appear in Iacus, King, and Porro (2011b).
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