Rolando Gonzales Martinez
Updated and tested to run on MatLab 2020a (January 2022)
In order to run the BS-PSM algorithm you will need:
(1) A n x n spatial contiguity matrix (W)
(2) A n x 1 binary treatment vector(y)
(3) A n x p matrix of potential explanatory variables (X)
(4) A n x 1 variable that measures the impact (I) of the treatment
There is a need also to define the parameters of the MCMC simulation:
- ndraws: number of draws (simulations) of the MCMC
- nomit: burn-in
By default, the prior of rho is elicitated in the positive range (0,1]
BS-PSM uses some functions of James LeSage Spatial Econometrics Toolbox
To run an example file check BSPSM_poverty_example.m
