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RE: st: Warning convergence not achieved

From   "Santos Silva, J.M.C." <>
To   <>
Subject   RE: st: Warning convergence not achieved
Date   Sun, 5 Aug 2012 22:05:39 +0100

Dear Ebru,

It may be the case that one of your industry dummies is equal to 1 only when
y is equal to zero. If that is the case, like others have suggested, you may be 
able to bypass the problem by grouping some industries.

Also, as I suggested before, run a probit with the industry dummies and see
if you have a "perfect predictor"

All the best,


> Dear Joao,
> Thank you. Actually, when I run the Tobit estimation it works very well. But 
> when I add industry dummies (9 industries) into the model it gives the 
> warning. How can I deal with that?
> Kind regards
> Ebru

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