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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.

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  • Mark Ottoni Wilhelm, 2008. "Practical Considerations for Choosing Between Tobit and SCLS or CLAD Estimators for Censored Regression Models with an Application to Charitable Giving," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(4), pages 559-582, August.
    • Handle: RePEc:bla:obuest:v:70:y:2008:i:4:p:559-582
    DOI: 10.1111/j.1468-0084.2008.00506.x
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    1. 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.
    2. Jonathan Meer & Benjamin A. Priday, 2020. "Tax Prices and Charitable Giving: Projected Changes in Donations under the 2017 Tax Cuts and Jobs Act," Tax Policy and the Economy, University of Chicago Press, vol. 34(1), pages 113-138.
    3. Brown, Sarah & Greene, William H. & Harris, Mark N. & Taylor, Karl, 2015. "An inverse hyperbolic sine heteroskedastic latent class panel tobit model: An application to modelling charitable donations," Economic Modelling, Elsevier, vol. 50(C), pages 228-236.
    4. Jorge González Chapela & José M. Labeaga & Luis A. Medrano, 2019. "Further econometric evidence on the extent and sources of cost savings in competitively tendered contracts," Empirical Economics, Springer, vol. 56(2), pages 679-701, February.
    5. Jesper N Wulff & Anders R Villadsen, 2020. "Keeping it within bounds: Regression analysis of proportions in international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(2), pages 244-262, March.
    6. Daniel Pollmann & Thomas Dohmen & Franz Palm, 2020. "Robust Estimation of Wage Dispersion with Censored Data: An Application to Occupational Earnings Risk and Risk Attitudes," De Economist, Springer, vol. 168(4), pages 519-540, December.
    7. Pradhan, Jaya Prakash & Das, Keshab, 2012. "Exports by Indian Manufacturing SMEs: Regional Patterns and Determinants," MPRA Paper 41804, University Library of Munich, Germany.
    8. 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.
    9. Yörük Bariş K., 2015. "Do Charitable Subsidies Crowd Out Political Giving? The Missing Link between Charitable and Political Contributions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(1), pages 1-29, January.
    10. Jonathan Meer & Benjamin A. Priday, 2019. "Tax Prices and Charitable Giving: Projected Changes in Donations Under the 2017 TCJA," NBER Working Papers 26452, National Bureau of Economic Research, Inc.
    11. Simons, Andrew M., 2022. "What is the optimal locus of control for social assistance programs? Evidence from the Productive Safety Net Program in Ethiopia," Journal of Development Economics, Elsevier, vol. 158(C).
    12. Markus Hertrich, 2022. "Foreign exchange interventions under a minimum exchange rate regime and the Swiss franc," Review of International Economics, Wiley Blackwell, vol. 30(2), pages 450-489, May.
    13. Atamanov, Aziz & Van den Berg, Marrit, 2012. "Determinants of the rural nonfarm economy in Tajikistan," MERIT Working Papers 2012-080, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Backus, Peter, 2010. "Is charity a homogeneous good?," Economic Research Papers 270773, University of Warwick - Department of Economics.
    15. Backus, Peter, 2010. "Is charity a homogeneous good?," The Warwick Economics Research Paper Series (TWERPS) 951, University of Warwick, Department of Economics.
    16. 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.
    17. Timothy M. Smeeding, 2018. "The PSID in Research and Policy," The ANNALS of the American Academy of Political and Social Science, , vol. 680(1), pages 29-47, November.
    18. Alzuabi, Raslan & Brown, Sarah & Taylor, Karl, 2022. "Charitable behaviour and political affiliation: Evidence for the UK," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 100(C).
    19. Radovan Kastratović, 2023. "Exporting decision of agricultural firms: The role of foreign direct investment," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 960-984, October.
    20. 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.
    21. Asrul Akmal Shafie & Irwinder Kaur Chhabra & Jacqueline Hui Yi Wong & Noor Syahireen Mohammed, 2021. "Mapping PedsQL™ Generic Core Scales to EQ-5D-3L utility scores in transfusion-dependent thalassemia patients," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(5), pages 735-747, July.
    22. Cobourn, Kelly M. & Burrack, Hannah J. & Goodhue, Rachael E. & Williams, Jeffrey C. & Zalom, Frank G., 2011. "Implications of simultaneity in a physical damage function," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 278-289, September.
    23. Lundborg , Per & Skedinger, Per, 2014. "Minimum Wages and the Integration of Refugee Immigr ants," Working Paper Series 4/14, Stockholm University, Swedish Institute for Social Research.

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