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From |
"Lachenbruch, Peter" <Peter.Lachenbruch@oregonstate.edu> |

To |
<statalist@hsphsun2.harvard.edu> |

Subject |
RE: st: RE: xttobit initial value not feasible |

Date |
Tue, 15 Apr 2008 08:39:19 -0700 |

There are also two types of models that haven't been discussed: Two-part or hurdle models - these estimate the probability of response using a logistic model and estimate the magnitude of response among the responders using a regression model. This implies two things - the responses are normal, and you can identify the zeros. The last would be something like finding hospital expenses in an insurance record, when the insured has not been hospitalized. The other model would be a mixture model of zeros and non-zeros. If you can't identify the zeros from theory, you can use the mixture model and estimate the proportion of zeros. The zip and zinb models are representatives of this. I don't recall seeing a zimr (zero-inflated multiple regression) These are quite close in spirit, but may be far apart in estimation. Tony Peter A. Lachenbruch Department of Public Health Oregon State University Corvallis, OR 97330 Phone: 541-737-3832 FAX: 541-737-4001 -----Original Message----- From: owner-statalist@hsphsun2.harvard.edu [mailto:owner-statalist@hsphsun2.harvard.edu] On Behalf Of Austin Nichols Sent: Monday, April 14, 2008 11:46 AM To: statalist@hsphsun2.harvard.edu Subject: Re: st: RE: xttobit initial value not feasible I doubt the large number of zeros is the ulitimate cause of your error message. There is probably something odd about your data. Can you run a pooled model with -tobit- instead of -xttobit-? You may also want to consider -poisson- and others in that family. On Mon, Apr 14, 2008 at 2:24 PM, sarah young <sarahyoungnew@googlemail.com> wrote: > Nick, > > Thanks so much for your reply again. you are right that 2/3 firms do > not export anything in my data, i.e. their export intensity is zero. > export intensity is measued as the ratio of exports and total sales. > Many existing literature on determinants of export intensity use > Tobit, I understand a reason is that they treat export intensity as a > censored variable. I read somewhere that for a variable like this, > i.e. with over half of the observation as zero, Tobit model is more > appropriate than xtreg or xtabond2. Is that right? Thanks a lot. > > Sarah > > > > On Mon, Apr 14, 2008 at 6:48 PM, Nick Cox <n.j.cox@durham.ac.uk> wrote: > > My point had I think nothing to do with censoring, but with the geometry > > of what you are > > asking Stata to do. > > > > Please appreciate that I don't know anything about your data, nor > > I am an economist. > > > > If I see that 2/3 of firms have zero "export intensity", then unless > > intensity > > has some special meaning, I infer from that that 2/3 firms do not export > > anything -- at least > > in the data period. > > > > sarah young > > > > > > Thanks for the response. I am just starting to learn econometrics. I > > thought that for a variable with over half of the observations are > > zero, like export intensity in my model, the variable could be treated > > as a censored variable. Or probably I am wrong? > > > > I have used xtreg and xtabond2 to estimate the model and they performed > > well. > > > > > > > > On Mon, Apr 14, 2008 at 5:31 PM, Nick Cox <n.j.cox@durham.ac.uk> wrote: > > > Consider a standard regression of your response (call it y) on any two > > > predictors. > > > Then a simplified analogue of your problem is that two-thirds of your > > > data lie on > > > the plane y = 0 and the other third lies on one side of that plane. > > > Geometrically that sounds > > > a pretty awkward situation to model. Having more predictors and using > > > tobit don't I think > > > make it any easier. > > > > > > There is no positive suggestion embedded here, just a thought that the > > > message doesn't sound that > > > surprising in such a light. > > > > > > Nick > > > n.j.cox@durham.ac.uk > > > > > > sarah young > > > > > > I have been trying to run xttobit without success. The problem is > > > "initial value not feasible". > > > > > > I have a panel of more than 4000 firms for 15 years, which altoghther > > > is about 62,000 firm-year observations. The dependent variable is > > > export intensity, two thirds of which are zeros. So I chose to use > > > Tobit model. The model is on the determinants of export intensity, > > > theoretically the choosing of the independent variables is fine, which > > > include TFP, age, size, R&D intensity etc, as well as year and > > > industry dummies. I have tried by using different sets of independent > > > variables, for example, including only one variable on the right side, > > > excluding year and industry dummies, all of these not working and the > > > message was the same, "initial value not feasible." > > > > > > I have searched on Statalist archive and found this thread: > > > http://www.stata.com/statalist/archive/2007-05/msg01036.html > > > > > > I tried to solve the problem according to the suggestions in the > > > thread but still it is not working. Could anyone give some advice? > > > What are the possible problems behind this? How to solve them? * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/ * * For searches and help try: * http://www.stata.com/support/faqs/res/findit.html * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**References**:**st: xttobit initial value not feasible***From:*"sarah young" <sarahyoungnew@googlemail.com>

**st: RE: xttobit initial value not feasible***From:*"Nick Cox" <n.j.cox@durham.ac.uk>

**Re: st: RE: xttobit initial value not feasible***From:*"sarah young" <sarahyoungnew@googlemail.com>

**RE: st: RE: xttobit initial value not feasible***From:*"Nick Cox" <n.j.cox@durham.ac.uk>

**Re: st: RE: xttobit initial value not feasible***From:*"sarah young" <sarahyoungnew@googlemail.com>

**Re: st: RE: xttobit initial value not feasible***From:*"Austin Nichols" <austinnichols@gmail.com>

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