Consistency
If the relationship parameter is estimated by regressing the observed on, the resulting ordinary least squares regression estimator is inconsistent. It will yield a downwards-biased estimate of the slope coefficient and an upwards-biased estimate of the intercept. Takeshi Amemiya (1973) has proven that the maximum likelihood estimator suggested by Tobin for this model is consistent.
Read more about this topic: Tobit Model
Famous quotes containing the word consistency:
“The lawyer’s truth is not Truth, but consistency or a consistent expediency.”
—Henry David Thoreau (1817–1862)
“All religions have honored the beggar. For he proves that in a matter at the same time as prosaic and holy, banal and regenerative as the giving of alms, intellect and morality, consistency and principles are miserably inadequate.”
—Walter Benjamin (1892–1940)