Truncated dependent variable

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In econometrics, truncated dependent variables are variables for which observations cannot be made for certain values in some range.[1] Regression models with such dependent variables require special care that properly recognizes the truncated nature of the variable. Estimation of such truncated regression model can be done in parametric [2] [3] or semi- and non-parametric frameworks. [4] [5]


  1. ^ ""Truncated Dependent Variables"". Retrieved 2008-03-22. 
  2. ^ Amemiya, T. (1973): “Regression Analysis When the Dependent Variable is Truncated Normal,” Econometrica, 41, 997–1016.
  3. ^ Heckman, J. J. (1976): “The Common Structure of Statistical Models of Truncation, Sample Selection, and Limited Dependent Variables and a Simple Estimator for Such Models,” Annals of Economic and Social Measurement, 15, 475–492.
  4. ^ Lewbel, A. and O. Linton, (2002), Nonparametric censored and truncated regression, Econometrica, 70, 765–779.
  5. ^ Park, B.U., L. Simar, and V. Zelenyuk (2008). "Local likelihood estimation of truncated regression and its partial derivatives: Theory and application," Journal of Econometrics 146(1), pages 185-198.