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Environmental correlation uses OLS, not Tobit

Open jzuccollo opened this issue 11 years ago • 0 comments

Correlations with non-discretionary variables should, ideally, be estimated with a Tobit model but OLS has been used by some authors: http://pascal.iseg.utl.pt/~depeco/wp/wp332006.pdf

The problem with Tobit is that it is not yet implemented in statsmodels, so it would be preferable to use OLS for now.

Discussion of how this should really be done (very technical): http://www.clemson.edu/economics/faculty/wilson/courses/bcn/papers/Simar-Wilson-2sdea.pdf

Example of using OLS: http://www.researchgate.net/publication/13645982_Technical_efficiency_in_the_clinical_management_of_critically_ill_patients/links/0deec52b9c71517024000000

jzuccollo avatar Nov 04 '14 16:11 jzuccollo