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Testing identifying assumptions in Tobit Models

Santiago Acerenza, Otávio Bartalotti, Federico Veneri

arXiv 5 Aug 2024 · Econometrics · publishedEconometric Reviews (2026)

arXiv:2408.02573 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper develops sharp testable implications for Tobit and IV-Tobit models' identifying assumptions: linear index specification, (joint) normality of latent errors, and treatment (instrument) exogeneity and relevance. The new sharp testable equalities can detect all possible observable violations of the identifying conditions. We propose a testing procedure for the model's validity using existing inference methods for intersection bounds. Simulation results suggests proper size for large samples and that the test is powerful to detect large violation of the exogeneity assumption and violations in the error structure. Finally, we review and propose new alternative paths to partially identify the parameters of interest under less restrictive assumptions.

Citation extraction

53
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in-text mentions
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Lee, Myoung-Jae (1995) Semi-parametric estimation of simultaneous equations with limited dependent variables: a case study of female labour supply1.00084100%
2Chernozhukov, Victor and Lee, Sokbae and Rosen, Adam M (2013) Intersection Bounds: Estimation and Inference1.00063100%
3Chernozhukov, Victor and Kim, Wooyoung and Lee, Sokbae and Rosen, Ad… (2015) Implementing Intersection Bounds in Stata1.00053100%
4Acerenza, Santiago and Bartalotti, Otávio and Kédagni, Désiré (2023) Testing identifying assumptions in bivariate probit models self0.9568488%
5Manski, Charles F. and Pepper, John V (2000) Monotone Instrumental Variables: With an Application to the Returns to Schooling0.64422100%
6Mourifié, Ismael and Wan, Yuanyuan (2017) Testing Local Average Treatment Effect Assumptions0.64422100%
7Goff, Leonard and Kédagni, Désiré and Wu, Huan (2024) Testing Identifying Assumptions in Parametric Separable Models: A Conditional Moment Inequality Approach0.58531100%
8Wooldridge, Jeffrey M (2005) Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity0.5114225%
9Barros, Michelli and Galea, Manuel and Leiva, V\'ictor and Santos-Ne… (2018) Generalized Tobit models: Diagnostics and application in econometrics0.5113233%
carson2007Tobitunmatched citation key carson2007Tobit0.5113233%

Showing the top 10 of 54 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.