Nonlinear Tobit Decomposition
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Yi Zhang
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.
© Heldermann Verlag
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- Approximating Reliability of a System with Doubly Bounded Performance Functions
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Articles in the same Issue
- A Note on Run Length Variability Reduction for EWMA Charting
- A Note on Nature and Significance of Stochastic Models
- Estimation of Pareto Survival Function in the Presence of Outlying Observations
- Loss Reduction in Point Estimation Problems
- Application of Arithmetic-Geometric Mean Inequality for Construction of Reliability Test Plan for Parallel Systems in the Presence of Covariates
- On Bayesian Estimation in a Parallel System
- Approximating Reliability of a System with Doubly Bounded Performance Functions
- Probability Weighted Moments Approach to Quality Control Charts
- Weibull Extension of Bivariate Exponential Regression Model with Gamma Frailty for Survival Data
- Nonlinear Tobit Decomposition
- Reliability Test Plans for Exponentiated Log-Logistic Distribution
- Transient Analysis of a System with Queue Dependent Servers and Controllable Arrivals
