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st: tobit model in a percentage range


From   "Cremades, Roger" <r.cremades@cranfield.ac.uk>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   st: tobit model in a percentage range
Date   Tue, 16 Aug 2011 18:57:12 +0000

Dear all,

I am hesitating about using Tobit in a model with a dep var in a percentage range with values in 0 or 100, my dataset looks something like this:

%ADOPTION (dep var)    subsidy    soil_clay    asset    ... more indep vars
0                                      1            1            200
100                                   0            1            590
0                                      0            0            700
...                                     ...           ...           ...
74                                    1            0            500
100                                   0            1            600
58                                    1            1            780
0                                      1            0            300


OLS seems to produce bias in that case and I do not find information about how to justify using Tobit model in the stata book store or in Long/Freese book, most authors do it without justify it properly and I do not know if it is appropiate as there are no really censured values under 0 or above 100, may somebody help or give advice about appropriate background to justify pros/cons of using Tobit in this cases?

best greetings and wishes,

Roger
ENREM MSc.
Cranfield University

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