• The Korean Journal of Applied Statistics
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• v.35 no.3
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• pp.357-370
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• 2022

In this paper, Tobit and Heckit models are introduced. These models have been used for analyzing censored data. Censoring occurs at a specific point and a large number of observations are distributed with a positive probability at a certain point. Censoring can occur due to observing limitation or exogenous variables. Tobit and Heckit models are used to correct sample selection bias, which can occur when an ordinary linear regression model is fitted to censored data. However, the difference between the two models is not clearly accounted for; hence, they have often been used interchangeably. Therefore, the suitability of the models was validated through simulated data, and demonstrated through real data. As the result, it was confirmed that both Tobit and Heckit models are well-fitted to the data censored due to observing limitation, although Tobit model was fitted parsimoniously. In contrast, only Heckit model is well-fitted to the data censored due to exogenous variables.

• International Journal of Human Ecology
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• v.9 no.1
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• pp.81-95
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• 2008

This paper examined the impact of psychological characteristics of consumers on household debt decisions. With the use of the Heckit models (the traditional approach to the selection problem) this study undertook an empirical study of the influence of a wide range of factors on financial decisions. This study used U.S. household-level data that offers detailed information on household debt, expectations about future income, expectations about future economic conditions, the amount of financial risk the respondent was willing to take, and the amount of time allotted for planning family savings and spending. This study showed that respondents with both substantial financial risk tolerance and positive expectations about future income were likely to have larger household debt showing that researchers and policy-makers need to consider consumer sentiment and preference measures in modeling behavior in credit markets. Additional results showed that household debt is significantly related to two key economic variables: income and net worth.

• Journal of Distribution Research
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• v.12 no.4
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• pp.27-47
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• 2007

Using survey data and the Heckit model that adequately controls the sample selection bias, we analyze shoppers expenditure through two major emerging shopping channels: Internet shopping and TV home shopping channels. Age, Internet experience, daily Internet usage, the number of computers are factors that affect the ratio of consumers' expenditure through Internet shopping relative to the expenditure through TV home shopping. Shopping frequency which represents the shoppers' incentives to reduce transaction costs also has a positive effect on the proportion of shoppers' expenditure through the Internet shopping. Shoppers' perceptions of convenience, reliability, speed, and diversity are also shown to affect shoppers' relative expenditure ratio through Internet shopping. In contrast, shoppers' perception of prices does not seem to affect their purchasing behavior.

• Journal of the Korean Regional Science Association
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• v.34 no.1
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• pp.49-60
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• 2018

The purpose of the study is to analyze the housing problems of single-person household in 20-35 age group. Using the survey of Household's Consumption in 2014, we estimated the housing demand function of young single-person household in Seoul. As a result, the coefficient of the permanent income for young single-person household housing was significantly lower than other groups and the housing demand was also lower than others. Since current income isn't come up to permanent income enough, the housing consumption of young single-person household shrinks. It implies the role of the housing financial market is less activated. That is, the difficulty of realization of permanent income and lack of housing finance are the main cause of the imbalance of housing demand of one young person. Therefore, it implies that in order to alleviate the housing problem of the young single-person household, a policy to balance the permanent income with the housing demand is needed.

• Journal of Families and Better Life
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• v.23 no.3 s.75
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• pp.217-230
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• 2005

The purpose of this study was to examine factors related to the purchase of cash-value life insurance of households. Based on human capital and bequest motive theories of the demand for life insurance, this study developed a conceptual model of the demand for life insurance of households. In addition, in order to capture the beneficiaries' preference and expected lifetime utility, expected future financial needs were included in the conceptual model. Using Heckit analysis, the model was estimated by two stages. The results supported that human capital, bequest motives and expected future financial needs were significant factors on both decision to have insurance and the mont of insurance. Specifically, if the household's head expected to have a higher potential in the future, the household was more likely to have insurance. If a household had dependents, the household was more likely to have insurance. As income or monthly expenditure increased, the probability of haying insurance and the amount of the insurance increased However, savings or social insurance were positively related to the purchase of insurance.