The problem is that my depedent variable cannot "physically" (i.e., in real world situations) extrapolate a certain range of values (thus all my observed values lie within this range) but when I run the regression some of the fitted values are, in fact, outside this range (although the general fit of the model is good). So I need a kind of Tobit model, but I need to specify not only the lower bound but also the upper bound of the range. The Tobit command in GRETL constrains the lower bound to zero (whenever the fitted values are negative), but it does not specify an upper bound (and it does not allow me to specify a lower bound other than zero).

2006/10/27, gretl-users-request@ricardo.ecn.wfu.edu <gretl-users-request@ricardo.ecn.wfu.edu >:

Message: 1
Date: Thu, 26 Oct 2006 18:02:59 -0400
From: James Wells < jlwells@panix.com>
Subject: Re: [Gretl-users] censored regression
To: Gretl list <gretl-users@ricardo.ecn.wfu.edu>
Message-ID: < 45413093.1090202@panix.com>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed

Just a thought, but can transform your dependent variable so that the
minimum is zero? E.g., suppose your observed values of Y are 3, 5, and
8 so in the console, do "genr newdepvar = Y - 3"

Thiago Marzagão wrote:
> I'd like to constrain my dependent variable (which is quantitative and
> continuous) estimates to lie within a certain range (say, A and Z). Is
> there any way to do that with GRETL? (Tobit command constrains the
> lower bound to zero, but I think it does not allow me to specify an
> upper bound or an alternative lower bound)
>
> Thank you,
>
> Thiago Marzagão
> ------------------------------------------------------------------------