Using Propensity Score Matching to Uncover Shopify Capital’s Effect on Business Growth - Shopify

What this post added

This post details the application of propensity score matching (PSM) to evaluate the causal impact of Shopify Capital on merchant growth. It outlines the research question, the challenges of A/B testing in this context, and the methodology used to create comparable treatment (US Capital recipients) and control (Canadian non-recipients) groups. Key aspects include defining the groups, selecting features for matching, using a caliper matching algorithm, and assessing the quality of the match using standardized mean differences, visual diagnostics, and variance ratios.