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- Least Squares Estimates Symetrically Adjusted With No Loss Of Information In The Truncated Tobit Model

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Author Info
Ezequiel Uriel Jiménez () (Instituto Valenciano de Investigaciones Económicas)
María Consuelo Colom (Universitat de València)
María Cruz Molés (Universitat de València)
María Luisa Moltó Carbonell (Universitat de València)

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Abstract

The objective of this paper is to improve the estimator of Powell (1986) in the truncated Tobit model. The Powell estimator is the least squares alternative to the maximum likelihood estimator for the Tobit model. Only symmetry of the distribution of the error term is assumed, but no distribution function is needed. In order to attain symmetry, our proposal predicts the values of the left hand side of the distribution, using the information contained in the right hand side, instead of eliminating sample information as the Powell estimator does. The paper takes an appropriate family of estimators as the point of departure, deriving the Power estimator as a particular case. The behaviour of the estimates of interest within thefamily is analysed both in terms of the theoretical properties and the small sample properties. El objetivo de este trabajo es mejorar el estimador propuesto por Powell (1986) para el modelo Tobit truncado. El estimador de Powell supone una alternativa al estimador máximo verosímil del modeloTobit y su ventaja es que no necesita admitir ninguna forma funcional conocida para la distribución deltérmino de error. La única hipótesis distribucional que se impone es la simetría. Para conseguir lasimetría, nuestra propuesta predice los valores de la cola inferior de la distribución, utilizando lainformación contenida en la cola derecha, en vez de eliminar información muestral como hace elestimador de Powell. El trabajo toma un adecuada familia de estimadores como punto de partida,derivando el estimador de Powell como un caso particular. Se analiza el comportamiento de losestimadores de interés dentro de la familia tanto en términos de propiedades teóricas comopropiedades en muestras finitas.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-1998-25.pdf
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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 1998-25.

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Length: 31 pages
Date of creation: Oct 1998
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:1998-25

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Keywords: Estimación semiparamétrica; modelo Tobit; regresión truncada Semiparametric estimation; Tobit model; truncated regression; Powell estimator;

References listed on IDEAS
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  1. White, Halbert, 1980. "Nonlinear Regression on Cross-Section Data," Econometrica, Econometric Society, vol. 48(3), pages 721-46, April. [Downloadable!] (restricted)
  2. Amemiya, Takeshi, 1973. "Regression Analysis when the Dependent Variable is Truncated Normal," Econometrica, Econometric Society, vol. 41(6), pages 997-1016, November. [Downloadable!] (restricted)
  3. Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-60, November. [Downloadable!] (restricted)
  4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  5. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July. [Downloadable!] (restricted)
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