Dear Statalisters,
I never used Tobit model. I would like to have some advice here. Thank you !
The dependent variable of m regression model has a lower bound of zero. It measures the number of patents a firm was granted in year t scaled by total dollars of research and development expense, i.e., it measures how efficient a firm is using R&D investment to generate patents. Many sample firms have zero patents for year t, I saw another paper with same dependent variable use Tobit model.
I found UCLA stata help on Tobit,
http://www.ats.ucla.edu/stat/stata/dae/tobit.htm
not sure if I need to set upper bound following this post.
Below is summary stats of my dependent variable
Variable | Obs Mean Std. Dev. Min Max
-------------+---------------------------------------------------------
xvar | 51,036 .5973732 2.196713 0 21.91509
What are the common practices in setting up Tobit in stata?
Thanks,
Rochelle
I never used Tobit model. I would like to have some advice here. Thank you !
The dependent variable of m regression model has a lower bound of zero. It measures the number of patents a firm was granted in year t scaled by total dollars of research and development expense, i.e., it measures how efficient a firm is using R&D investment to generate patents. Many sample firms have zero patents for year t, I saw another paper with same dependent variable use Tobit model.
I found UCLA stata help on Tobit,
http://www.ats.ucla.edu/stat/stata/dae/tobit.htm
not sure if I need to set upper bound following this post.
Below is summary stats of my dependent variable
Variable | Obs Mean Std. Dev. Min Max
-------------+---------------------------------------------------------
xvar | 51,036 .5973732 2.196713 0 21.91509
What are the common practices in setting up Tobit in stata?
Thanks,
Rochelle
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