MatchingLBO.do

This do file aims to match companies with the closest propensity score based on industry, year, and number of patents from STATApredictLBO.dta.

Attempt 1

use STATApredictLBO.dta, clear \\ rename nopatents case_nopatents \\ rename logitpw case_logitpw \\ rename gvkey case_gvkey \\

/*industry, year, and no. of patents*/ joinby industrygroup3 year using STATApredictLBO.dta gen a = nopatents*0.95 gen b = nopatents*1.05 gen delta=abs(logitpw-case_logitpw) drop if case_nopatents > b | case_nopatents < a

// GENERATE SOME RANDOM NUMBERS TO RANDOMLY BREAK ANY TIES // ON CLOSENESS OF MATCH OF MARKET VALUE set seed 1020 gen double shuffle1 = runiform() gen double shuffle2 = runiform()

by case_gvkey (delta shuffle1 shuffle2), sort: keep if _n == 1 drop delta shuffle1 shuffle2

( )Error op. sys. refuses to provide memory