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Propensity score method

As explained in Causal AI

Propensity score matching is a causal adjustment technique that pairs treated and untreated individuals with similar propensity scores before comparing outcomes.

When treatment is not randomly assigned, propensity score methods support causal adjustment for the backdoor estimand. A propensity score represents the probability of receiving treatment given observed confounders; a broader machine-learning view learns a function that compresses their influence while making them conditionally independent of treatment. section 11.4.2

The practical payoff is dimensionality reduction: adjust for one score rather than every variable in the adjustment set. Matching pairs treated and untreated individuals with similar scores; stratification groups observations into score-based subsets; weighting adjusts through score-derived weights. section 11.4.2

A causal workflow makes the assumptions and implementation explicit:

  • Identify potential confounders and represent their relationships in a causal DAG; correlation alone does not establish causation. section 13.1.1
  • Estimate a propensity score, typically with logistic regression, or learn a more general propensity score function. section 11.4.2
  • Choose matching, stratification, or weighting according to the adjustment procedure, then estimate the treatment effect and confidence interval. section 11.4.2
Listing 11.8 Propensity score matching
causal_estimate_match = model.estimate_effect(
    identified_estimand,
    method_name="backdoor.propensity_score_matching",     #1
    target_units="ate",
    confidence_intervals=True
)
print(causal_estimate_match)

DoWhy implements propensity score matching by passing the backdoor estimand to its matching estimator and requesting an average treatment effect with confidence intervals. section 11.4.2

How Causal AI covers it

How deep it goes
Defines propensity scores, explains dimensionality reduction, and distinguishes matching, stratification, and weighting procedures.
Examples
Uses an online-gaming treatment example and DoWhy listings for propensity score stratification, matching, and weighting.
What it assumes
Requires identifying plausible confounders and validating their causal relationships with a DAG, domain expertise, or data.
What you can do after
Apply it via DoWhy to estimate average treatment effects with matching, stratification, or weighting and confidence intervals.
How it connects
Connects propensity scores to backdoor adjustment, confounders, causal DAGs, logistic regression, stratification, and inverse probability weighting.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Causal AI. The section links point to the parts of the book it draws on.