Dear All,
I am trying to estimate fertilizer impact on farm household income. In doing so, I am using propensity score (pscore) matching method to create comparable control groups (observations). I have some potential endogeneous explanatory variables that have impact both on the decision to use fertilizer and variable of interest (farm income) and would like to include them in the pscore estimation.
My question is, do I need to worry about endogeneity problem while using pscore like any other parametric regression (e.g. ols).
Regards,
Menale
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