Abstract
The Tobit model, or censored regression model, is useful to learn about the conditional distribution of a variable y* given a vector of regressors x, when y* is observed only if it is above or below some known threshold (censoring). In the original model of Tobin (1958), for example, the dependent variable was expenditures on durables, and values below zero are not observed.
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Robin, JM. (2010). Tobit model. In: Durlauf, S.N., Blume, L.E. (eds) Microeconometrics. The New Palgrave Economics Collection. Palgrave Macmillan, London. https://doi.org/10.1057/9780230280816_35
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DOI: https://doi.org/10.1057/9780230280816_35
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