Wednesday, December 14, 2005

st: calculate elasticities tobit model with dummies : syntax : interpretation

Hi

I am running a tobit model with continuous variables and dummies variables (cross section)

Independent variables are not in log

Dependent variable is not in log

I calculated the tobit model by using the command tobit and and the marginal effect by using mfx predict at the means of the independent variables.

My questions are :

1) is it correct to estimate the elasticties with the command eyex for the continuous variables

2) is it correct to estimate the elasticities of the dummies variables with the command eyex (I am think that in this context all dummy variables are treated as continuous, is it correct ?), what is the interpretation of my elastictiy for dummy variables if i am using the eyex command ??

3) do you have any others suggestions to estimate the impact of the dummies variables

Thank you very much for your help

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