Does anyone know the command to estimate Eaton's and Tamura's (1994)
threshold tobit model?
This is a variant of the standard tobit model where the dependent
variable is specified as ln(a+V) and 'a' is a threshold parameter, which
is estimated in addition to the constant term among the right hand side
variables. The threshold parameter 'a' is assumed to be the amount of
trade that is lost in transit or the amount that 'melts away'. If 'a'=0
, we are back to the standard tobit. If 'a'>0, then explanatory
variables for V must achieve a minimum threshold value before strictly
positive values of V occur (Eaton and Tamura, pp 490)
The commands 'tobit' and 'dtobit' in stata only give the standard tobit
estimates. Is there any command or options that one needs to add to
obtain the threshold tobit estimates?
Thanks
Priya
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