Estimation of Type 3 Tobit Models Using Symmetric Trimming and Pairwise Comparisons

Publication Year
1997

Type

Journal Article
Abstract
This paper considers estimation of the semiparametric type 3 Tobit model. The authors construct two-step estimators that use the ideas of symmetric trimming and pairwise comparisons that have been proposed for the censored regression model by J. L. Powell (1986) and B. E. Honore and J. L. Powell (1994). The estimators are consistent and asymptotically normal under two identifying assumptions: conditional symmetry and independence between the errors and regressors. The ideas and techniques are also implementable in other selection models that are variations of the basic type 3 Tobit model. The authors demonstrate this by applying the proposed method in estimating an empirical model considered by C. Udry (1994).
Journal
Journal of Econometrics
Volume
76
Issue
1-2
Pages
107-28
Date Published
01/1997