Abstract
Tobit models are used to model variables subject to exogenous censoring. For example, duration data cannot be observed longer than the survey period; hours of work cannot be observed negative although an individual might be better off consuming more leisure time than is available. This article reviews a list of econometric techniques to estimate Tobit models. Maximum likelihood, Heckman’s two-stage estimator, and Powell’s trimmed least squares are successively addressed.
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Robin, JM. (2018). Tobit Model. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2349
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2349
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Publisher Name: Palgrave Macmillan, London
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