Hi,

I would like to investigate the effects of a natural disaster on individuals. Therefore I have been using a difference-in-difference method. My main regression so far is as given below:

Code:
xtreg outcome_var FY2007 FY2008 FY2009 FY2011 FY2012 FY2013 didFY2007 didFY2008 didFY2009 didFY2011 didFY2012 didFY2013 if inrange(wave,2008,2014), fe
This was I was controlling for individual fixed effects (thorugh
Code:
,fe
), year fixed effects (through
Code:
FY2007 FY2008 FY2009 FY2011 FY2012 FY2013
, and I was looking at the breakdown of the treatmenteffect (through
Code:
didFY2007 didFY2008 didFY2009 didFY2011 didFY2012 didFY2013
, where each
Code:
didFY2007=treatment*financialyear2007
.

Now as an alternative way I want to use propensity score matching and want to use the
Code:
teffects psmatch
code. Regarding this I have two questions:

1. I have read the manual for the function but I am not sure what the function does. I have a treatment group (
Code:
intreatmentgroup==1
) and a control group (
Code:
intreatmentgroup==0
). I want the function to match each individual from the treatment group with one individual from the control group. Therefore when I specify the function as below is this the case?

Code:
 teffects psmatch (outcome_var) (intreatmentgroup cleanedhigh1 cleanesempst hgsex hhtype cleanhstenr,probit)
2. Does the above code mean that the function does the matching based on the variables
Code:
cleanedhigh1 cleanesempst hgsex hhtype cleanhsten
?

3. The shock has been observed in 2010. Therefore a in my difference-in-difference estimation I can look at the effects before and after the shock through
Code:
did=treatment*post
where
Code:
post
is for 2010 and later. How can I do that here? Can I do that here?

4. Is it possible to control for fixed effects using
Code:
teffects psmatch
, i.e. I want to control for individual as well as year fixed effects? Or is the control for individual fixed effects already done through the matching process? In that case how can I control for year fixed effects?

I know those are many questions but I have now been reading for 2-3 weeks about this and I still could not solve this issue. Any help or answer to any of the questions would be highly appreciated..

Kind regards.