st: propensity score matching in 2 stages(if match is not found inside region then match outside)

[Auditya Shamsuddin <auditya46@gmail.com>]

Fellow Stata-users
I am a relatively new STATA user.
I am using psmatch2(version 4.0.4 10nov2010 E. Leuven, B. Sianesi) to
find out impact of natural disaster on child labor. Based on the
propensity to be affected by natural disaster, I would like to match
children within same district(same as county in US) i.e., a natural
disaster affected child will be matched with another child from the
same district who has similar likelihood of being affected by the
natural disaster but who is not. To ensure good quality match within
the district, I specify the caliper to be of 0.25 standard deviation
of propensity score. But problem with this condition is that 35 out of
my 105 treatment observations stay out of common support and, this
cannot be used for estimating average treatment effect on the treated.
So, I would like to match these 35 observations, which did not find
close  match within district, with control observations from outside
the district, if close matches exist within 0.25 standard deviation of
propensity score. If a treatment fails to find a match within the
specified caliper even outside the region/district, I will discard
that from the analysis. In brief
i) First stage: matching has to be done within district.
ii) In Second stage the unmatched treatments remaining from the first
stage  will be tried to match with control observations from outside
the region/district.
How can I  use psmatch2 for this? Or, any other package in Stata? I
really lack knowledge on writing program in STATA. Can anyone save me
with this, specifically, how to write code to execute my model. I
appreciate your thought and instruction in advance.
SIncerely
Auditya
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/faqs/resources/statalist-faq/
*   http://www.ats.ucla.edu/stat/stata/