A robust approach to dealing with zero expenditures on mobile communications

Seung-Hoon Yoo ()

Applied Economics Letters, 2003, vol. 10, issue 12, 757-760

Abstract: Conventional parametric approach to dealing with zero expenditures is not robust to heteroscedastic and/or non-normal error structure. This paper applies symmetrically censored least squares estimation as a robust approach to dealing with zero expenditures on mobile communications in Seoul, Korea. The result of specification test indicates the robust approach outperforms the parametric approach significantly.

Date: 2003
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DOI: 10.1080/1350485032000138962

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