What are the Advantages and Limitations of Propensity Score Matching?
Advantages: - Reduces Confounding: By balancing covariates, PSM reduces the confounding bias. - Simplicity: Relatively straightforward to implement with the help of statistical software. - Transparency: The process of matching and checking balance is easily interpretable.
Limitations: - Unmeasured Confounding: PSM can only control for observed covariates. Unmeasured confounders can still bias the results. - Data Requirements: Requires a large sample size to find good matches, especially when there are many covariates. - Model Dependence: The quality of matching depends on the correct specification of the propensity score model.
