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A robust approach to dealing with zero expenditures on mobile communications

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  • Seung-Hoon Yoo

Abstract

Conventional parametric approach to dealing with zero expenditures is not robust to heteroscedastic and/or non-normal error structure. This paper applies symmetrically censored least squares estimation as a robust approach to dealing with zero expenditures on mobile communications in Seoul, Korea. The result of specification test indicates the robust approach outperforms the parametric approach significantly.

Suggested Citation

  • Seung-Hoon Yoo, 2003. "A robust approach to dealing with zero expenditures on mobile communications," Applied Economics Letters, Taylor & Francis Journals, vol. 10(12), pages 757-760.
  • Handle: RePEc:taf:apeclt:v:10:y:2003:i:12:p:757-760
    DOI: 10.1080/1350485032000138962
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    References listed on IDEAS

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    1. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-1460, November.
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    4. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
    5. Newey, Whitney K., 1987. "Specification tests for distributional assumptions in the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 125-145.
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