This research develops a mixture regression model that is shown to have advantages over the classical Tobit model in model fit and predictive tests when data are generated from a two step process. Additionally, the model is shown to allow for flexibility in distributional assumptions while nesting the classic Tobit model. A simulated data set is utilized to assess the potential loss in efficien...

We propose an alternative Hausman test for normality in the Tobit model. Unlike the previous tests by Ruud (1984) or Newey (1987), our test compares the Tobit estimator to an estimator which is consistent both under the null hypothesis and under the alternative hypothesis. To do so, it utilizes a purely nonparametric estimator for the Tobit model proposed by Newey (1999b) and Jeong (2004). We p...

This paper presents the design of TOBIT, an infrastructure to support Web-based simulations. TOBIT provides a subnet grid, which is partitioned into web server tier, database server tier and simulation server tier. This grid is self-managed through the simulation manager (SimMan) extended from the Oracle Grid Control [3]. TOBIT is currently being used to support autonomic computing of two web-b...

This paper derives consistent standard errors for a panel Tobit model in the presence of correlated errors. The problem is framed in the context of Newey and West (1987), considering the Tobit model as a special case of a GMM estimator. JEL codes: C23, C24

It is not unusual for the response variable in a regression model to be subject to censoring or truncation. Tobit regression models are specific examples of such a situation, where for some observations the observed response is not the actual response, but the censoring value (often zero), and an indicator that censoring (from below) has occurred. It is well-known that the maximum likelihood es...

Relatively recent research has illustrated the potential that tobit regression has in studying factors that affect vehicle accident rates (accidents per distance traveled) on specific roadway segments. Tobit regression has been used because accident rates on specific roadway segments are continuous data that are left-censored at zero (they are censored because accidents may not be observed on a...

Variance-component (VC) methods are flexible and powerful procedures for the mapping of genes that influence quantitative traits. However, traditional VC methods make the critical assumption that the quantitative-trait data within a family either follow or can be transformed to follow a multivariate normal distribution. Violation of the multivariate normality assumption can occur if trait data ...

HERE WE PRESENT the likelihood function used to estimate the parameters of the demand model. The model can be thought of as a system of four “standard” equations: (i) a tobit down payment equation (with censoring at the minimum down), (ii) a probit purchase equation, (iii) a tobit repayment equation (with censoring at full payment or at the end of our sample), and (iv) a linear price negotiatio...