A Comparison of the Performance of Various Estimators of Parametric Type1 Tobit Model

In this paper, we use Monte Carlo simulations to compare parametric estimators of Type 1 Tobit model. In particular, we examine the performance for finite samples of three different estimators of simple Tobit model: the least squares (LS) estimator, the Heckman (H) estimator and the maximum likelihood (ML) estimator. These three estimators are consistent and asymptotically normal in the case where the density error is specified. However, these properties are sensitive to the situation where the error distribution is not specified. The purpose of this article is to determine properties of the three estimators, namely bias and convergence, by using Monte Carlo simulations.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

E. Rahmani, A. Kaaouachi and S. Melhaoui, "A Comparison of the Performance of Various Estimators of Parametric Type1 Tobit Model," Open Journal of Statistics, Vol. 3 No. 1, 2013, pp. 1-4. doi: 10.4236/ojs.2013.31001.

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