Tobit modelforecastingC11C23C53G21Based on a large panel dataset of small commercial banks in the United States, this paper employs a dynamic panel Tobit model to analyse the role of uncertainty in forecasting charge-off rates on loans for credit card (CC) and residential real estate (RRE). ...
The model begins with the form Yi=xiβi+ (vi + ui) , j=1,…,N Where, Yi is the production (or the logarithm of production) of the ith firm; Xi is a vector of inputs of the ith firm; β is a vector of unknown parameters; vi are random variables which are assumed to be ...