Estimation of Type 3 Tobit Models Using Symmetric Trimming and Pairwise Comparisons

Citation:

Honore, Bo E., Ekaterini Kyriazidou, and Christopher Udry. 1997. “Estimation of Type 3 Tobit Models Using Symmetric Trimming and Pairwise Comparisons.” Journal of Econometrics 76 (1-2): 107-28.

Date Published:

January-February

Abstract:

This paper considers estimation of the semiparametric type 3 Tobit model. The authors construct two-step estimators that use the ideas of symmetric trimming and pairwise comparisons that have been proposed for the censored regression model by J. L. Powell (1986) and B. E. Honore and J. L. Powell (1994). The estimators are consistent and asymptotically normal under two identifying assumptions: conditional symmetry and independence between the errors and regressors. The ideas and techniques are also implementable in other selection models that are variations of the basic type 3 Tobit model. The authors demonstrate this by applying the proposed method in estimating an empirical model considered by C. Udry (1994).

Publisher's Version

Last updated on 12/28/2018