Showing papers on "Tobit model published in 2013"

Geographical pathways for SME internationalization: insights from an Italian sample

Abstract: Purpose – The purpose of this paper is to examine the determinants of two distinct geographic pathways to internationalization for small and medium‐sized enterprises (SMEs). Regional and global pathways are juxtaposed to study the influence on export performance of selected key intangible resources, namely, innovation, human resource management, networking and the firm's experience.Design/methodology/approach – Building upon a resource‐based view of the firm, Tobit regression models are used to test the hypotheses on a sample of 2,657 Italian manufacturing firms.Findings – The paper provides empirical evidence that the determinants of SME export performance vary in line with the geographic scope of internationalization. While product innovation (innovation) positively impacts on SME export performance, irrespective of export destination, other factors do so selectively. For example, location in industrial districts (networking) and the deployment of external managers (human resource management) exclusivel...

Tobit or OLS? An empirical evaluation under different diary window lengths

Abstract: Researchers analysing time-use data often estimate limited dependent variable models because time spent must be nonnegative and cannot be more than the total amount of time in a given observation period. While the traditional empirical technique applied to such cases is maximum likelihood estimation of a Tobit (censored regression) model, recent debate has questioned whether linear models estimated via Ordinary Least Squares (OLS) are preferable. On the one hand, Tobit models are deemed necessary to address the significant censoring (i.e. large numbers of zeroes) typically found in time-use data, in the face of which OLS estimators would be biased and inconsistent. Yet, optimization occurs over a longer period than that covered by the typical time diary (often a day), and thus some argue that reported zeroes represent a measurement problem rather than true nonparticipation in the activity, in which case OLS would be preferred. We provide direct empirical evidence on this question using the Australian Time...

Implementation of a double-hurdle model

Abstract: Corner solution responses are frequently observed in the social sciences. One common approach to model phenomena that give rise to corner solution responses is to use the tobit model. If the decision to participate in the market is decoupled from the consumption amount decision, then the tobit model is inappropriate. In these cases, the double-hurdle model presented in Cragg (1971, Econometrica 39: 829�844) is an appropriate alternative to the tobit model. In this article, I introduce a command, dblhurdle, that fits the double-hurdle model. The implementation allows the errors of the participation decision and the amount decision to be correlated. The capabilities of predict after dblhurdle are also discussed.

The determinants of profit efficiency of banks in Vietnam

Abstract: This paper examines the factors that affect profit efficiency of banks in Vietnam over the period from 2000 to 2006. The effects of four groups of variables, including bank-specific characteristics, ownership, transitional environment and macroeconomic conditions on the profitability of banks, are analysed using a Tobit model to account for the censored nature of the efficiency scores. The model is estimated using a two-step instrumental-variable method as a regressor is endogenous. The findings show that the profit efficiency of a bank is enhanced by a larger size and better management ability, while it is hampered by low quality of assets and a too high level of capitalisation. High growth in per-capita GDP and a low-inflation rate provide a favourable environment for banks to improve their profitability. The study also finds that among the foreign banks operating in Vietnam, those headquartered in Australia, Japan, the US and Europe perform better than those headquartered in Asia as well as the domesti...

Determination of the efficiency of the world railway companies by method of DEA and comparison of their efficiency by Tobit analysis

Abstract: This paper attempts to measure the performance of railway companies that produce passenger and freight services around the world. The data covering 10 years from 2000 to 2009 is analyzed first via the data envelopment analysis method in order to obtain technical efficiency and allocative efficiency scores of 31 railway companies for the purpose of the study. In the analysis conducted by use of the CCR model, while total 17 firms were efficient in the first year, this figure reaches to 18 companies for the last year with one more addition. While only two companies seem efficient in the first year, this figure goes down to one for the last year. With input oriented and variable return analysis conducted by use of the BCC model, the firms having technical efficiency at the beginning of the period were 20 in number. At the end of the period, the figure reaches to 24. Next, the outputs of DEA are correlated by Tobit regression and tried to determine decisiveness of the outputs on the efficiency. It has been seen that the same output composition used with Tobit analysis gives more compliant results with the allocative efficiency scores rather than with the technical efficiency scores.

育兒時間的決定因素－American Time Use Survey 2003-2010實證研究

Abstract: Parents’ time on child care has profound impact on children’s human capital formation. Previous studies on parental time with children, which use ordinary least squares and Tobit model as their estimation method, focus on conditional mean of parental time with children. As far as we know, no empirical attention has been paid to parents that spent little time with children. Since wage is likely to be endogenous to time spent with children, this thesis uses censored quantile instrumental variable estimator to analyze the determinants of time spent on child care. Based on micro data from the 2003-2010 American Time Use Survey, we found that the dummy variable for non-hispanic non-black and non-white is statistically significantly negatively associated with time spent with children. This result implies that more resources should be directed to facilitating and promoting parental time with children among non-hispanic non-black and non-white parents.

The efficiency of government spending on health: Evidence from Europe and Central Asia

Abstract: This paper uses data envelopment analysis (DEA) to evaluate health expenditures to demonstrate how productivity has changed over time for 46 selected countries in Europe and Central Asia. Our results show that countries could have increased output by 1.2% given the existing level of inputs. The patterns of efficiency change for the observed countries are further analyzed using the Malmquist productivity index (MPI). Decreased productivity growth is related to technical change. Finally, we regress efficiency scores on a set of environmental variables using a Tobit model. The positive influence of hospital beds and primary schooling on efficiency scores demonstrates that countries with better medical environments and a greater number of educational years may enjoy increased efficiency. In addition, there exists a regional effect between Europe and Central Asia.

Are Public-Private Partnerships a Source of Greater Efficiency in Water Supply? Results of a Non-Parametric Performance Analysis Relating to the Italian Industry

Abstract: This article reports the outcome of a performance study of the water service provision industry in Italy. The study evaluates the efficiency of 21 “private or public-private” equity and 32 “public” equity water service operators and investigates controlling factors. In particular, the influence that the operator typology and service management nature - private vs. public - has on efficiency is assessed. The study employed a two-stage Data Envelopment Analysis methodology. In the first stage, the operational efficiency of water supply operators is calculated by implementing a conventional BCC DEA model, that uses both physical infrastructure and financial input and output variables to explore economies of scale. In the second stage, bootstrapped DEA and Tobit regression are performed to estimate the influence that a number of environmental factors have on water supplier efficiency. The results show that the integrated water provision industry in Italy is characterized by operational inefficiencies of service operators, and scale and agglomeration economies may have a not negligible effect on efficiency. In addition, the operator typology and its geographical location affect efficiency.

Determinants and Patterns of Income Diversification among Smallholder Farmers in Akaki District, Ethiopia

Abstract: This research was initiated to find out the different factors affecting income diversification and assess patterns of income diversification in Akaki district of Ethiopia. Two stage random sampling with Proportionate Probability Sampling (PPS) was used to collect cross-sectional data from 155 farm households using structured questionnaire. The data were also supported with documents from agricultural and rural development office and farmers cooperatives in the study area. The Tobit model was used to analyze the factors determining the income diversification. From the descriptive statistics, sales of homemade farm implements and drinks, and non-farm employment was found to be the most important sources of off-farm income in the study area. The results from Tobit model indicate that, family size; number of extension visit per year and education level has a positive significant effect over income diversification. On the other hand, age of the household head; land size and average distance from market have negative and significant influence on the household's decision towards diversification.

What Influences Farm Size Growth? An Illustration in Southwestern France

Abstract: Farm size in industrialized countries grew significantly over the second half of the twentieth century. Using several econometric models, this article examines factors that influence farm size, the probability of an increase in farm size, and the intensity of farm growth. We find that farm structural characteristics, farmer's age, the existence of a successor, and spatial factors approximating urban influences have a significant impact on farm size, whereas human capital variables do not. This study considers a representative sample of 5,000 professional farms in the Midi-Pyrenees region between 2000 and 2007.

Tax-limited reaction functions

Abstract: SUMMARY This paper models for the first time a spatial process in local tax policies in the presence of centrally imposed fiscal limitations. Focusing on the frequently encountered case of a tax rate cap, we evaluate three empirical approaches to the analysis of spatially dependent limited tax policies: (i) a Bayesian spatial approach for censored dependent variables; (ii) a Tobit corner solution model augmented with a spatial lag; (iii) a spatial discrete hazard model. The evidence arising from an investigation of severely state-constrained local vehicle taxes in Italy suggests that ignoring tax limitations can lead to substantial underestimation of inter-jurisdictional fiscal interaction. Copyright © 2011 John Wiley & Sons, Ltd.

What Influences farm size growth? An Illustration in Southwestern France

Abstract: Farm size in industrialized countries grew significantly over the second half of the twentieth century. Using several econometric models, this article examines factors that influence farm size, the probability of an increase in farm size, and the intensity of farm growth. We find that farm structural characteristics, farmer's age, the existence of a successor, and spatial factors approximating urban influences have a significant impact on farm size, whereas human capital variables do not. This study considers a representative sample of 5,000 professional farms in the Midi-Pyrenees region between 2000 and 2007.

Dividend Policy and Ownership Structure: An Applied Study on Industrial Companies in Amman Stock Exchange

Abstract: This study aims to determine whether ownership structure is linked to the dividend policy on industrial companies are listed in ASE. The study sample consisted of sixty two industrial firms listed in ASE from (2000-2006).In order to achieve the objective of the study, annually dividend and annual report publications of public shareholding firms held by ASE. The Tobit model or censored regression model specification was used to test the study hypotheses for the level of dividends paid. The study was found more than half (55%) of the firm observation in our sample have zero dividends. Results shows that ownership dispersion as measured by the natural log of the number of stockholders (STOCK) seems to be not related to dividend policy in Jordan since it was insignificant in both analyses, Tobit and OLS. The fraction held by insiders (INSD), has negative impact on the level of dividends paid. The other ownership, family is negatively but not significantly, and institution is positively and significant influence on the dividend policy, the multiple ownership is negative and insignificant, the finally variable for ownership is foreigner positive and insignificant.

Functional form issues in the regression analysis of financial leverage ratios

Abstract: Linear models are typically used in the regression analysis of capital structure choices. However, given the proportional and the bounded nature of leverage ratios, models such as the tobit, the fractional regression model and its two-part variant are a better alternative. In this article, we discuss the main econometric assumptions and features of those models, provide a theoretical foundation for their use in the regression analysis of leverage ratios and review some statistical tests suitable to assess their specification. Using a dataset previously considered in the literature, we carry out a comprehensive comparison of the alternative models, finding that in this framework the most relevant functional form issue is the choice between a single model for all capital structure decisions and a two-part model that explains separately the decisions to issue debt and, conditional on the first decision, on the amount of debt to issue.

The Alpha-power Tobit Model

Abstract: The main object of this article is to propose an extension of the tobit model for which the error distribution follows the power-normal distribution (Gupta and Gupta, 2008). Inference is dealt with by using the likelihood approach. Simulation studies and application to a real data set are used to demonstrate the usefulness of the extension.

Bayesian semiparametric mixture Tobit models with left censoring, skewness, and covariate measurement errors

Abstract: Common problems to many longitudinal HIV/AIDS, cancer, vaccine and environmental exposure studies are the presence of a lower limit of quantification of an outcome with skewness and time-varying covariates with measurement errors. There has been relatively little work published simultaneously dealing with these features of longitudinal data. In particular, left-censored data falling below a limit of detection (LOD) may sometimes have a proportion larger than expected under a usually assumed log-normal distribution. In such cases, alternative models which can account for a high proportion of censored data should be considered. In this article, we present an extension of the Tobit model that incorporates a mixture of true undetectable observations and those values from a skew-normal distribution for an outcome with possible left-censoring and skewness, and covariates with substantial measurement error. To quantify the covariate process, we offer a flexible nonparametric mixed-effects model within the Tobit framework. A Bayesian modeling approach is used to assess the simultaneous impact of left-censoring, skewness and measurement error in covariates on inference. The proposed methods are illustrated using real data from an AIDS clinical study.

Loss Given Default Modelling: Comparative Analysis

Abstract: In this study we investigated several most popular Loss Given Default (LGD) models (LSM, Tobit, Three-Tiered Tobit, Beta Regression, Inflated Beta Regression, Censored Gamma Regression) in order to compare their performance. We show that for a given input data set, the quality of the model calibration depends mainly on the proper choice (and availability) of explanatory variables (model factors), but not on the fitting model. Model factors were chosen based on the amplitude of their correlation with historical LGDs of the calibration data set. Numerical values of non-quantitative parameters (industry, ranking, type of collateral) were introduced as their LGD average. We show that different debt instruments depend on different sets of model factors (from three factors for Revolving Credit or for Subordinated Bonds to eight factors for Senior Secured Bonds). Calibration of LGD models using distressed business cycle periods provide better fit than data from total available time span. Calibration algorithms and details of their realization using the R statistical package are presented. We demonstrate how LGD models can be used for stress testing. The results of this study can be of use to risk managers concerned with the Basel accord compliance.

Socioeconomic Determinants of Success at the Summer Paralympics

Abstract: For the first time, the determinants of a country’s success at the Paralympic Games are studied, using data from four editions, starting in 1996. By means of a tobit panel, the authors find that gr...

Demand for financial services by households in Ghana

Abstract: Purpose – The purpose of this paper is to investigate household financial choice and the determinants of financial services in rural and urban households in Ghana.Design/methodology/approach – Data from the Ghana Living Standard Survey 5 (GLSS 5) are used to estimate the participation of a household in a particular financial sector and what determines this choice.Findings – The results from Tobit and conditional logit models account for households' demographic characteristics and their financial decisions. The Tobit estimates show that household size, age, sex, marital status, occupation, income, remittances and shocks determine households' participation in the financial markets. Conditional logit model results suggest that locational characteristics are important in obtaining financial services from particular sectors of the financial market. The results also suggest that when the alternatives of financial services are available, rural households are more likely than urban households to obtain their fina...

Agricultural Technology Adoption, Market Participation and Rural Farming Households’ Welfare in Nigeria

Abstract: This study assessed the determinants of intensity of improved rice varieties adoption using the Tobit model and also employed. The Heckman Two-stage model was used to identify the determinants of market participation and its potential impact on farming households’ welfare in three states selected from the three notable rice producing ecologies in Nigeria. A cross-sectional data of 600 rice farmers from the three states were used in the analysis. The Tobit model revealed that the gender of household head, wealth status, distance to sources of seed, household size, membership of any organisation, and educational background positively and significantly influence the intensity of improved rice varieties adoption. Gender of household head, contact with extension agents, educational background, area cultivated to improved rice varieties, and access to seed were positively and statistically significant in determining market participation. Also, the estimated ordinary least squares (OLS) part or the second step of the Heckman model revealed that how peanut acreage, number of bicycles owned, and the dependency ratio could influence the income from farming as a result of improved variety adoption. Therefore, it is recommended that formation of associations among the rural farmers should be encouraged. Access to seed and information about the improved rice varieties are also essential to increase the intensity of its adoption. Programmes that would improve contact with extension agents, educational background and the proportion of area cultivated to improved rice varieties should be promoted in order to increase market participation and generate improvement in rural households’ welfare.

Are new work practices and new technologies biased against immigrant workers

Abstract: Purpose – The purpose of this paper is to analyse if introduction of new technologies and work practices are negatively related to the employment opportunities of immigrants. Design/methodology/approach – A representative plant-level panel survey merged with register data is used. Random effect regression Tobit models are estimated. The dependent variable is wage costs share of immigrants at the plant. The important explanatory variables are measures of new technologies and work practices. Findings – The results show that workplaces where employees use personal computers intensively and have broad autonomy hire fewer non-western immigrants who have not been raised in Norway. The negative relationship is especially strong for low-skilled non-western immigrants. Originality/value – The estimation framework for studying this topic is new. The paper also presents original evidence on the relationship between characteristics of the “new” economy and demand for immigrant workers.

Efficiency and heterogeneity of public spending in education among Italian regions

Abstract: The Italian educational system is strictly regulated by the Ministry of Education. However, there are strong differences in educational inputs and outputs among regions, as can be noticed by analysing the allocation of public budgets to the regions and their students' (average) performance in national and international test scores. A general institutional change is ongoing in Italy, that is, the decentralisation of competencies from the State to the regions (federalism). Some insights are necessary about the efficiency of public spending on education in a comparative perspective across regions. To estimate efficiency scores, a nonparametric technique called data envelopment analysis was used. The unit of analysis comprises the 18 Italian regions, with the focus on the lower secondary education. Then, a second-stage Tobit regression was used to detect the factors affecting efficiency. The results corroborate the difference between the North and South of Italy (the regions in the North outperform their counterparts in the South). When looking at the regional socioeconomic context, gross domestic product per capita appears as the key determinant of efficiency. Copyright © 2012 John Wiley & Sons, Ltd.