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How does stata estimates ATET (Average Treatment Effect on the Treated) using teffects psmatch.

I understand the average treatment effect (ATE) is computed by taking the average of the difference between the observed and potential outcomes for each subject done by teffects psmatch.

What about ATET?

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The ATET is estimated by finding a control unit to pair with each treated unit and then computing the difference between the mean outcome in the treated units with the mean of the matched control units. It's actually a bit simpler than estimating the ATE, which requires doing two rounds of matching, one for the treated group and one for the control group.

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  • $\begingroup$ is it sensitive to poor overlap like ATE. Because essentially ATE will omit sections of poor overlap in estimation. $\endgroup$
    – Magut
    May 18 at 6:17
  • $\begingroup$ See my answer here. I also wrote an article about interpreting the ATE and ATET. $\endgroup$
    – Noah
    May 18 at 14:26

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