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.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd Edition, 2008 Edited by Steven N. Durlauf and Lawrence E. Blume.
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Bibliography
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Robin, JM. (2008). Tobit Model. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_2349-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_2349-1
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Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
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