For example in a Tobit model if we make a log transformation of the
expenditures (dep. var.) some values of the dep. var. will have
missing values since they were originally equal to zero. But assuming
that the zero exp. =1 and then taling the log of expenditures, we can
estimate the tobit model. Is this OK for having extra grouns?
-------------------
>Yes, there are. Unless you have extra grounds
>for thinking that missing really means 1,
>this practice surely cannot be recommended
>in general.
>
>Nick
>[email protected]
>
>fatma bircan
>
>> Is there any problems with assuming that the dependent variable
takes
>> the value of 1 when it is missing to make the ln(dep. var.) equal
to
>> zero.
>
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>
Fatma Bircan
Middle East Technical University
Department of Economics
210-2032
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