Dear Stata listers:
I am running a regression in which my dependent
variable is continuous but it has big chunk of zeros.
I know that the variable is not truncated or censored
in any way so OLS should be the correct estimator.
However this type of estimation will run into problems
because the resulting residuals will typically not be
"well-baheved" (there are grossly non-normal)
Any Idea on how to proceed? When the dependent
variable is 0/1 or ordinal there are some procedures
available (zero-inflated estimators) but I have not
found anything when the dependent variable is
continuous.
thanks for the help!
Julio
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