Generalized Tobit

In econometrics, the generalized Tobit model is a generalization of the Tobit model named after James Tobin. It is also called the Heckit model[1] after James Heckman. Another name is "type 2 Tobit model".[2]

Tobit models assume that a random variable is censored.

Etymology

When asked why it was called the "Tobit" model, instead of Tobin, James Tobin explained that this term was introduced by Arthur Goldberger, either as a contraction of "Tobin probit", or as a reference to the novel The Caine Mutiny, a novel by Tobin's friend Herman Wouk, in which Tobin makes a cameo as "Mr Tobit". Tobin reports having actually asked Goldberger which it was, and the man refused to say.[3]

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References


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