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Re: st: RE: ln1=0 for missing values

From   Edwin Leuven <>
Subject   Re: st: RE: ln1=0 for missing values
Date   Wed, 21 Apr 2004 15:10:21 +0200

fatma bircan wrote:
For example in a Tobit model if we make a log transformation of the
expenditures (dep. var.) some values of the dep. var. will have
missing values since they were originally equal to zero. But assuming
that the zero exp. =1 and then taling the log of expenditures, we can
estimate the tobit model. Is this OK for having extra grouns?
i suggest you read chapter 16 of:

it explains very clearly the issues, and how you should properly calculate partial effects in corner solution models like yours

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