Keeping it within bounds: Regression analysis of proportions in international business

• 成果类型: Article
• 署名作者: Wulff, Jesper N.; Villadsen, Anders R.
• 署名单位: Aarhus University; Aarhus University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00278-w
• 发表日期: 2020
• 页码: 244-262
• 关键词: econometrics < research methods; Tobit; fractional regression; proportional dependent variable; multiple regression analysis < research methods

摘要

International business researchers commonly estimate proportions, percentages, rates, or fractions - so-called proportional dependent variables. In this paper, we posit that two regression strategies are particularly pertinent to the international business field: Tobit and fractional regression. Reviewing recent international business research, we find that, while fractional regression is rarely used, analyses from Tobit regression are often incomplete or erroneously interpreted with consequences for the validity of the reported results. Accordingly, we clarify how researchers should choose between Tobit and fractional regression and interpret their results. We present insights based on simple simulations and data examples with associated Stata code and a decision tree for choosing between types of models for use with proportional dependent variables.