Triple Hurdle Model with Zero Expenditures

Yeong Nain Chi ()

Quarterly Journal of Econometrics Research, 2018, vol. 4, issue 1, 1-9

Abstract: The Tobit model is a one-step decision method, implying that the decision to participate and the decision of how much to spend are influenced by the same variables and in the same manner. The double hurdle model is a two-step decision process; consumers first decide whether or not to participate, and then a second decision is made on how much to spend. The triple hurdle model has three separate stochastic decision choices for the first stage of awareness, the second stage of participation, and a final stage of consumption decision. This study provides a guidance in the choice of an appropriate model, which all observations can be used in the estimation for awareness and participation decisions, but only positive observations that pass awareness, participation and consumption decisions simultaneously can be used in the estimation based on a censored and truncated sample, allowing for richer interpretation of consumer choice behavior.

Keywords: Zero expenditures; Tobit model; Double hurdle model; Triple hurdle model; Likelihood ratio test (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.conscientiabeam.com/index.php/88/article/view/2563/3975 (application/pdf)
https://archive.conscientiabeam.com/index.php/88/article/view/2563/5276 (text/html)

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:pkp:qjoecr:v:4:y:2018:i:1:p:1-9:id:2563

Access Statistics for this article

More articles in Quarterly Journal of Econometrics Research from Conscientia Beam
Bibliographic data for series maintained by Dim Michael ().