Tobit Regression Models Using R - SlideServe
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Tobit Regression Models Using R - SlideServe
Tobit Regression Models Using R. Nhat Ho. Outline. Theoretical Background What is Tobit Regression? Standard Tobit Model Estimation Method When we should not use Tobit model? Implementation in R using CensReg package with real data and simulated data. What is Tobit Regression?.
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Use the data in LOANAPP for this exercise. The binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one if the applicant was white. The other applicants in the data set are black and Hispanic. To test for discrimination in the mortgage loan market, a linear probability model can be used: approve =β0 β1 white other factors. (i) If there is d
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