a Briefly in not more than 3 sentences explain how the Propensity Score Matchingprocedure attempts to address the issue of endogeneity
The Propensity Score Matching procedure aims to address the issue of endogeneity by creating a control group that is similar to the treatment group in terms of observable characteristics. It does this by estimating the probability (propensity score) of an individual being in the treatment group based on their observable characteristics, and then matching individuals from the control group to those in the treatment group who have similar propensity scores. This helps to reduce the bias caused by unobserved variables that may affect both the treatment assignment and the outcome
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