Nearest Neighbor Matching

Nearest Neighbor Matching is a technique used in causal inference to estimate the effect of a treatment by matching treated and untreated units that are similar in terms of their observed covariates. The method involves finding the nearest untreated unit to each treated unit based on a distance metric, and then comparing the outcomes of the two groups. This technique is particularly useful when randomization is not possible or ethical, and when there are many covariates that need to be balanced between the treatment and control groups. Nearest Neighbor Matching can be used in both observational studies and randomized controlled trials.
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