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Tobit models

Tobit models. Econ 60303 Bill Evans. Example: Bias in censored models. Bivariate regression x i and ? are drawn from N(0,1) y i = ? + x i ? + ? i Let ? =0 and ? =1 (45 o line) and construct y Estimate y i = ? + x i ? + ? i. Consider three LHS variables

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Tobit models