A note on the Tobit likelihood function
Economics LettersPublished 1 January 1979
Richard E. Quandt
Citations1
SJR quartileQ2
SJR score0.76
SNIP0.98
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Abstract
Abstract The likelihood functions for several econometric models are unbounded over certain sequences in parameter space. Examples are the disequilibrium model, the conditional logit model and a certain type of switching regression model. We show how a similar difficulty may arise in the Tobit model but that the presence of this anomaly becomes less likely as sample size increases.
Keywords
Decision SciencesEconomics, Econometrics and Finance
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