Caliper matching

Caliper matching permits a candidate matching pair only when a prespecified distance is at most a tolerance $c$. For propensity score $e(X)$, possible rules are $|e(X_i)-e(X_j)|\le c$ or $|\mathrm{logit}e(X_i)-\mathrm{logit}e(X_j)|\le c$. These are different distances; the numeric tolerance must be interpreted on the selected scale.^[ref]

For a treated unit with propensity score $0.40$, a raw-score caliper $c=0.03$ admits a control with score $0.42$ and excludes one with score $0.46$. The matching algorithm still has to choose among admissible controls and decide whether controls may be reused. A tighter caliper excludes distant pairs but can leave more treated units unmatched. Excluding those units changes the population represented by the matched estimate; a caliper is not a guarantee of an unchanged average treatment effect on the treated. Check covariate balance after matching, and account for the paired or reused-control structure in statistical inference.