The Review of Economics and Statistics Vol. 66 No. 1 1984
A Test of the Tobit Specification Against an Alternative Suggested by Cragg
Abstract
In this paper we present a specification test for the Tobit model. Specifically, we test the Tobit model against the alternative of a two-part model in which one set of parameters determines the probability of a limit observation while a second set of parameters determines the distribution of the non-limit observations. An advantage of our test is that it is easily calculated from the Tobit residuals.
- DOI
- 10.2307/1924712
- Volume
- 66
- Issue
- 1
- Pages
- 174
- Sources
- openalex crossref