Showing papers on "Tobit model published in 1982"
313 citations
TL;DR: In this paper, the authors examined issues of concern to just one or a few groups and jointly estimated a two equation system explaining both votes on the bill and contributions from an associated interest group.
Abstract: M /[ ANY citizens and scholars have been troubled by the influence that special interest groups appear to exert over policymaking as a result of their roles in the financing of political campaigns. These concerns inspired the enactment of a number of election law reforms in the 1970s, and have led to increasing popular support for public financing of electoral campaigns. Despite the public attention these issues have attracted, few social scientists have attempted to analyze the financial relationships between interest groups and policymakers empirically.1 One such study was reported by Durden and Silberman (1976), who included contributions from the AFL-CIO political action committee as an independent variable in an equation explaining congressional voting on minimum wage legislation. Their results indicated that campaign contributions significantly affected voting on that issue. The work I have done differs substantially from that of Durden and Silberman in two ways. First, I have chosen to examine issues which were of considerably narrower concern than the minimum wage issue. In the interest of simplicity, I examine issues of concern to just one or a few groups. I have also used a different econometric technique. If campaign contributions are actually endogenous (as seems plausible), the single equation estimation technique employed by Durden and Silberman is subject to a possible simultaneous equations bias. For each issue studied, I have therefore jointly estimated a two equation system explaining both votes on the bill and contributions from an associated interest group. The "'simultaneous probit-Tobit" model which I use takes into account the dichotomous nature of the variable indicating a congressman's vote, the non-negativity constraint imposed on the contribution variable, and the possibility of correlation between the error terms for the equations explaining these two variables.2 Full-information maximum likelihood (FIML) estimates for the model are consistent and asymptotically efficient.
290 citations
60 citations
Posted Content•
TL;DR: The authors examined the effect of liquidity constraints on consumption expenditures using a single-time cross-section data set and estimated a reduced-form equation for consumption on high-saving households by the Tobit procedure to account for the selectivity bias.
Abstract: This paper examines the effect of liquidity constraints on consumption expenditures using a single-time cross-section data set A reduced-form equation for consumption is estimated on high-saving households by the Tobit procedure to account for the selectivity bias Since high-saving households are not likely to be liquidity constrained, the estimated equation is an appropriate description of how desired consumption dictated by the life cycle-permanent income hypothesis is related to the variables available in the cross-section data When the reduced-form equation is used to predict desired consumption, the gap between desired consumption and measured consumption is most evident for young households
41 citations
TL;DR: In this paper, the Tobit model was extended to the frontier production model, and a procedure for maximum likelihood estimation which greatly simplified the estimation process was proposed, which can be generalized to encompass a wide variety of limited dependent variable models, as demonstrated in Greene (1981).
36 citations
TL;DR: In this paper, a conceptual model of the allocation of a farmer's labour between farm and off-farm work is developed and applied to cross-sectional data from the Australian Agricultural and Grazing Industries Survey.
Abstract: Off-farm employment has become increasingly important as an aspect of resource adjustment and a source of income in Australian agriculture. However, it is surprising that there is a paucity of work on this topic reported in the agricultural economics literature. Therefore, we have drawn upon recent developments in labour economics in order to investigate off-farm employment in Australia. A conceptual model of the allocation of a farmer's labour between farm and off-farm work is developed and applied to cross-sectional data from the Australian Agricultural and Grazing Industries Survey. A Tobit maximum likelihood procedure is utilised to test the influences of the life cycle, level of human capital, wealth, non-wage income and farm income on the off-farm labour supply of farmers.
18 citations
TL;DR: In this paper, the maximum likelihood solution of the probit regression model for limited dependent variables, when there is first order serial correlation among the residuals, was discussed, and the authors showed that the first-order serial correlation can be used to estimate the first order correlation among residuals.
13 citations
Posted Content•
TL;DR: The authors examined the effect of liquidity constraints on consumption expenditures using a single-time cross-section data set and found that the gap between desired consumption and measured consumption is most evident for young households.
Abstract: This paper examines the effect of liquidity constraints on consumption expenditures using a single-time cross-section data set. A reduced-form equation for consumption is estimated on high-saving households by the Tobit procedure to account for the selectivity bias. Since high-saving households are not likely to be liquidity constrained, the estimated equation is an appropriate description of how desired consumption dictated by the life cycle-permanent income hypothesis is related to the variables available in the cross-section data. When the reduced-form equation is used to predict desired consumption, the gap between desired consumption and measured consumption is most evident for young households.
3 citations