Analysing household bottled water and water purifier expenditures: simultaneous equation bivariate Tobit model

Abstract

Household bottled water and water purifier expenditures are examined by taking into account three important characteristics: expenditures may be censored at zero, may be interdependent across expenditure type, and may be endogenously and jointly determined. Censoring, interdependence, and endogeneity of the two expenditures are examined through simultaneous equation bivariate Tobit model using household survey data.