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st: dtobit Interpretation


From   Abra Marie Jeffers <[email protected]>
To   [email protected]
Subject   st: dtobit Interpretation
Date   Wed, 21 May 2008 11:46:45 +0100

Hello,

I am trying to interpret the output of -dtobit- for a continuous, level variable.

For example: If -dtobit- returns that the marginal effect at the mean of the probability of being uncensored is 0.002 for x1, can I say that "if x1 increases by 10 from the mean, then the probability of being uncensored increases by 0.02 other things equal"?
Similarly, if -dtobit- returns that the marginal effects at the mean of the conditional expectation is -1.45 for x2, do I say that "if x2 increases by 100 from the mean, then the conditional expectation decreases by $145"?

This seems too simple given the nonlinearities involved in the calculations.

I would really appreciate any suggestions on giving the decomposed marginal effects an economic interpretation.

Thanks,
Abra
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