Logit, Probit and Tobit: Models for Categorical and Limited ...
Logit, Probit and Tobit: Models for Categorical and Limited ...
Logit, Probit and Tobit: Models for Categorical and Limited ...
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The <strong>Tobit</strong> Model<br />
• The estimated tobit coefficients are the marginal<br />
effects of a change in xj on y*, the unobservable latent<br />
variable <strong>and</strong> can be interpreted p in the same way y as in a<br />
linear regression model.<br />
• But such an interpretation may not be useful since we<br />
are interested in the effect of X on the observable y (or<br />
change in the censored outcome).<br />
– It can bbe shown h th that t change h iin y iis found f d by b multiplying lti l i<br />
the coefficient with Pr(a
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