SBAM: An algorithm for pair matching

Peter Stephensen and Tobias Markeprand

MPRA Paper from University Library of Munich, Germany

Abstract: This paper introduces a new algorithm for pair matching. The method is called SBAM (Sparse Biproportionate Adjustment Matching) and can be characterized as either cross-entropy minimizing or matrix balancing. This implies that we use information efficiently according to the historic observations on pair matching. The advantage of the method is its efficient use of information and its reduced computational requirements. We compare the resulting matching pattern with the harmonic and ChooSiow matching functions and find that in important cases the SBAM and ChooSiow method change the couples pattern n in the same way. We also compare the computational requirements of the SBAM with alternative methods used in microsimulation models. The method is demonstrated in the context of a new Danish microsimulation model that has been used for forecasting the housing demand.

Keywords: matching; microsimulation (search for similar items in EconPapers)
JEL-codes: C02 C51 C53 C54 (search for similar items in EconPapers)
Date: 2013-10-31
New Economics Papers: this item is included in nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://mpra.ub.uni-muenchen.de/59580/1/N2013_03.pdf original version (application/pdf)

Related works:
Working Paper: SBAM: An Algorithm for Pair Matching (2013)
Working Paper: SBAM: An Algorithm for Pair Matching (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:59580

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