For many years, the standard tool for propensity score matching in Stata has been thepsmatch2 command, written by Edwin Leuven and Barbara Sianesi. However, Stata 13 introduced a new teffects command for estimating treatments effects in a variety of ways, including propensity score matching. The teffects psmatch command has one very important advantage over psmatch2: it takes into account the fact that propensity scores are estimated rather than known when calculating standard errors. This often turns out to make a significant difference, and sometimes in surprising ways. We thus strongly recommend switching from psmatch2 to teffects psmatch, and this article will help you make the transition.
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