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Tobit
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16:13
YouTube
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Tobit model explained: censored regression (Excel)
How to estimate a regression model when the dependent variable is truncated or censored? This is a common problem when estimating, for example, consumption or dividend payouts that cannot be negative. Tobit model, developed by James Tobin, is a go-to technique in this case, that uses modified maximum likelihood to tackle this issue. Today, we ...
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