Posts Tagged ‘IPW’

An ordered-probit inverse probability weighted (IPW) estimator

teffects ipw uses multinomial logit to estimate the weights needed to estimate the potential-outcome means (POMs) from a multivalued treatment. I show how to estimate the POMs when the weights come from an ordered probit model. Moment conditions define the ordered probit estimator and the subsequent weighted average used to estimate the POMs. I use gmm to obtain consistent standard errors by stacking the ordered-probit moment conditions and the weighted mean moment conditions. Read more…