Nonlinear Tobit Decomposition

Zhang Yi, Wang Yi and Nadarajah Saralees
Additional contact information
Zhang Yi: Department of Finance, University of Nebraska, Lincoln, NE 68583, USA
Wang Yi: Departmant of Statistics, University of Nebraska, Lincoln, NE 68583, USA
Nadarajah Saralees: School of Mathematics, University of Manchester, Manchester M60 1QD, UK

Stochastics and Quality Control, 2006, vol. 21, issue 2, 271-277

Abstract: This paper extends the decomposition of marginal effects suggested by McDonald and Moffitt [The Review of Economics and Statistics 62: 318-321, 1980] to a nonlinear tobit model, considering the increasing use of tobit analysis and substantive economic implications of the decomposition. The decomposition provides more information than is commonly realized based on the coefficients obtained from fitting a tobit model. In this paper the generalized decomposition of marginal effects is derived and the effects in the decomposition are expressed in explicit and closed form. A simulation study illustrates the application of the nonlinear decomposition using a simple nonlinear consumption function, along with maximum likelihood estimation on the parameters of the nonlinear tobit regression model.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/EQC.2006.271 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:ecqcon:v:21:y:2006:i:2:p:271-277:n:10

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/eqc/html

DOI: 10.1515/EQC.2006.271

Access Statistics for this article

Stochastics and Quality Control is currently edited by George P. Yanev

More articles in Stochastics and Quality Control from De Gruyter
Bibliographic data for series maintained by Peter Golla ().