[R] Tobit Fixed Effects

[Arne Henningsen]

Dear Felipe

On 15 September 2011 09:58, Felipe Nunes <felipnunes at gmail.com> wrote:
> My technical problems were:
>
> (1) tob3 <- censReg(transfers.cap ~ factor(mayor) + vot.weight + vot.per +
> transfers.cap.lag + pib.cap + cluster(factor(year)), left=0, data = pool)
>
> Using 'censReg' my results never converge. Std. errors are not calculated
> and the coefficients are weird.

Did you estimate the model for the pooled data set (i.e. not
considering the panel structure)? Or did you create a "panel data
frame" using pdata.frame(), which is available in package "plm", and
estimate a random-effects model?

What do you exactly mean with "never converge"? Did you try to
increase the maximum number of iterations (argument "iterlim")? Did
you try to use other optimization methods, e.g. BHHH (argument
"method")?

What is the effect of using "cluster()" in the model (formula) specification?

/Arne

-- 
Arne Henningsen
http://www.arne-henningsen.name