SBAM: An Algorithm for Pair Matching

Peter Stephensen and Tobias Markeprand
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Tobias Markeprand: Danish Rational Economic Agents Model, DREAM, http://www.dreammodel.dk/

No 201303, DREAM Working Paper Series from Danish Rational Economic Agents Model, DREAM

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 eciently according to the historic observations on pair matching. The advantage of the method is its ecient 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 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: pair matching; algorithm; SBAM (search for similar items in EconPapers)
Pages: 41 pages
Date: 2013-10
New Economics Papers: this item is included in nep-cmp
Note: Conference paper for the 4th General Conference of the International Microsimulation Association
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://www.dreammodel.dk/SMILE/N2013_03.pdf First version, 2013 (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:dra:wpaper:201303

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