Policy Evaluation Coarsened Exact Matching

Coarsened Exact Matching (CEM) is a quasi-experimental causal-inference technique that creates balanced treatment and control groups from observational data by temporarily coarsening covariates into bins, exactly matching units within those bins, and then pruning unmatched observations before estimating policy effects. Introduced by Iacus, King, and Porro, CEM belongs to the monotonic imbalance bounding family of matching methods and is especially popular in policy evaluation.