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Implementation of a double-hurdle model

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  • Bruno Garcia

    (The College of William and Mary)

Abstract

Corner solution responses are frequently observed in the social sciences. One common approach to model phenomena that give rise to corner solution responses is to use the tobit model. If the decision to participate in the market is decoupled from the consumption amount decision, then the tobit model is inappropriate. In these cases, the double-hurdle model presented in Cragg (1971, Econometrica 39: 829–844) is an appropriate alternative to the tobit model. In this article, I introduce a command, dblhurdle, that fits the double-hurdle model. The implementation allows the errors of the participation decision and the amount decision to be correlated. The capabilities of predict after dblhurdle are also discussed. Copyright 2013 by StataCorp LP.

Suggested Citation

  • Bruno Garcia, 2013. "Implementation of a double-hurdle model," Stata Journal, StataCorp LP, vol. 13(4), pages 776-794, December.
    • Handle: RePEc:tsj:stataj:v:13:y:2013:i:4:p:776-794
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    Cited by:

    1. Picardy, Jamie Ann & Cash, Sean B. & Peters, Christian, . "Uncommon Alternative: Consumers’ Willingness to Pay for Niche Pork Tenderloin in New England," Journal of Food Distribution Research, Food Distribution Research Society, vol. 51(2).
    2. Joseph I. Uduji & Elda N. Okolo-Obasi, 2018. "Young Rural Women Participation in the E-Wallet Programme and Usage Intensity of Modern Agricultural Inputs in Nigeria," Working Papers of the African Governance and Development Institute. 18/062, African Governance and Development Institute..
    3. Xiaochen Gong & Shihua Ye, 2021. "Social Capital, the State’s Structural Intervention and Donors’ Choice Among Charitable Causes: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 647-674, June.
    4. Muhammad Jehangir Khan & G. M. Arif, 2016. "Household Charity in Pakistan: Magnitude, Determinants and Its Importance for the Well-being of Society," PIDE-Working Papers 2016:141, Pakistan Institute of Development Economics.
    5. Joseph I. Uduji & Elda N. Okolo-Obasi, 2018. "Young Rural Women Participation in the E-Wallet Programme and Usage Intensity of Modern Agricultural Inputs in Nigeria," Research Africa Network Working Papers 18/061, Research Africa Network (RAN).
    6. Dong, Jiayun & Liang, Wenyuan & Liu, Weiping & Liu, Jinlong & Managi, Shunsuke, 2020. "Does forestland possession enhance households’ access to credit?—Examining China’s forestland mortgage policy," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 78-87.

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