The standard Tobit maximum likelihood estimator under zero censoring threshold produces inconsistent parameter estimates, when the constant censoring threshold γ is nonzero and unknown. Unfortunately, the recording of a zero rather than the actual censoring threshold value is typical of economic data. Non-trivial minimum purchase prices for most goods, fixed cost for doing business or trading, ...

The nonlinear fixed effects model has two shortcomings, one practical, one methodological. The practical obstacle relates to the difficulty of estimating nonlinear models with possibly thousands of dummy variable coefficients. In fact, in many models of interest to practitioners, estimation of the fixed effects model is feasible even in panels with very large numbers of groups. The result, thou...

This paper analyses the link between the high-skilled employment share and the level of investment in information technology (IT) in the service production process. The analysis is based on an unbalanced panel data set for 933 West German firms over the period 1994-1996. To account for firms which do not employ high-skilled labor, proxied by university graduates, fixed and random effects Tobit ...

The objective of this study is to analyze the main determinants of alcoholic beverages consumption at home. Data comes from the latest Spanish Household National Survey, which provides information on expenditure and quantities of different food products by household. Because households are interviewed only 1 week, a large number of zeros have been recorded. Among the existing censured demand mo...

This article estimates the price elasticities of the demand for mobile telephone calls and the demand for messages for Portugal. We use a panel of individual level data. In order to account for the unobserved individual heterogeneity and for the data censoring, we estimate a Tobit model for panel data with individual random effects. The demand for calls and the demand for messages are inelastic...

In this paper we discuss the general issue of forecasting highly seasonal demand in regional airports, where peak flows approach airport capacity. For this, we propose a modeling combination, dynamic Tobit models with GARCH errors/disturbances, that is able to capture many of the shortcomings of most traditional models. Models are calibrated using monthly passenger and flight data for a 20 year...

This article explores the impact of English proficiency on labour supply of recent immigrants in Australia. Previous research has shown that English ability is important for participation and employment, however little research has been done with respect to hours worked. This study uses the second cohort of the Longitudinal Survey of Immigrants to Australia (LSIA) data to estimate a random effe...