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Practical Considerations for Choosing Between Tobit and SCLS or CLAD Estimators for Censored Regression Models with an Application to Charitable Giving

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  • Mark Ottoni Wilhelm

Abstract

Practical considerations for choosing between Tobit, symmetrically censored least squares (SCLS) and censored least absolute deviations (CLAD) estimators are offered. Practical considerations deal with when a Hausman test is better than a conditional moment test for judging the severity of a misspecification, the need to bootstrap the sampling distributions of the Hausman tests, what to look for in a graphical examination of the residuals and the limited value of SCLS. The practical considerations are applied to a model of the intergenerational transmission of charitable giving using new data from the Panel Study of Income Dynamics (PSID). The paper shows how to use relative distribution methods to calculate CLAD-based marginal effects on the observable dependent variable. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2008.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 70 (2008)
Issue (Month): 4 (08)
Pages: 559-582

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Handle: RePEc:bla:obuest:v:70:y:2008:i:4:p:559-582

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Cited by:
  1. Baris Yoruk, 2013. "Do Charitable Subsidies Crowd Out Political Giving? The Missing Link Between Charitable and Political Contributions," Discussion Papers 13-09, University at Albany, SUNY, Department of Economics.
  2. Pollmann, Daniel & Dohmen, Thomas & Palm, Franz C., 2012. "Robust Estimation of Wage Dispersion with Censored Data: An Application to Occupational Earnings Risk and Risk Attitudes," IZA Discussion Papers 6447, Institute for the Study of Labor (IZA).
  3. Jaya Prakash Pradhan & Mohammad Zohair & Mallikarjun V. Alagawadi, 2013. "Regional Policies, Firm Characteristics and Exporting in the Indian State of Karnataka," Foreign Trade Review, , vol. 48(1), pages 45-81, February.
  4. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
  5. Atamanov, Aziz & Van den Berg, Marrit, 2012. "Determinants of the rural nonfarm economy in Tajikistan," MERIT Working Papers 080, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  6. Steinberg, Richard & Zhang, Ye & Brown, Eleanor & Rooney, Patrick, 2010. "Earned, owned, or transferred: are donations sensitive to the composition of income and wealth?," MPRA Paper 30082, University Library of Munich, Germany.
  7. Pradhan, Jaya Prakash, 2010. "R&D strategy of small and medium enterprises in India: Trends and determinants," MPRA Paper 20951, University Library of Munich, Germany.
  8. Pradhan, Jaya Prakash & Das, Keshab, 2012. "Exports by Indian Manufacturing SMEs: Regional Patterns and Determinants," MPRA Paper 41804, University Library of Munich, Germany.

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