Application of Tobit-piecewise Regression in Economics Data Consisting of Outliers
Keywords:
Tobit-Piecewise Regression, Tobit Regression, Piecewise Regression, Limitation in Dependent Variable, Regression OutliersAbstract
This article was presented the estimation of Tobit-piecewise regression model. This model was developed by Mekbunditkul (2010) in order to cope with regression outliers problem. The maximum likelihood estimation (MLE) was employed thus the parameters estimate keep all properties of MLE such as consistency and best asymptotically normal. The interpretation of regression coefficients in Tobit-piecewise regression for application was explained in the sense of unconditional marginal effect and conditional marginal effect. Moreover, literatures related to the economics data, which dependent variable has been limited or the data consist of outliers, was demonstrated. The application of Tobit-piecewise regression was suggested in this paper in order to point out the contribution of this model.
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