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st: tobit interpretation

From   "Christine E. Boyle" <>
To   <>
Subject   st: tobit interpretation
Date   Wed, 31 Jul 2013 19:29:36 -0700


I am estimating the effect of village education level (portion of villagers
who attended middle school) on share of village investment by the villagers
using a tobit estimator.  Dependant and independent variables are both
between 0 and 1.

Once I set the   ul (1) and the ll(0), negative coefficients return such as

xttobit vl_share  edu_vill, ul(1) ll(0) i(countycode)

       			 Coef.                 =Std. Err.                z
P>z         [95% Conf.Interval]

edu_vill                -4.985241             2.46903                 -2.02
0.043     -9.824451    -.1460307

How does one interpret the coefficient that is outside of the bounds placed
on the model?

Thank you for your guidance!
Christine E. Boyle, PhD
Scholar / Entrepreneur
Blue Horizon Insight

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