Demand models which are alternatives to the widely used Tobit model are specified and estimated. These alternative models allow the consumer to choose whether or not to participate in a particular market, and if so, to choose the level of consumption. This approach is contrasted to the Tobit model which assumes all consumers are potential users of a good and that consumption levels and market participation are influenced by the same variables in the same way.
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Blaylock et al. (1993) studied this question.
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