We analyse several limited dependent variable models explaining the budget share that
Dutch families spend on vacations. To take account of the substantial number of zero
shares, two types of models are used. The first is the single‐equation censored regression
model. We estimate and test several parametric and semi‐parametric extensions of the Tobit
model. Second, we consider two‐equation models, in which the participation decision and
the decision on the amount to spend are treated separately. The first decision is modelled as …

We anaLyse several Zimited dependent variable modets expZaining the budget share that
Dutch famitfes spend on vacations. To take account of the substantiaZ number of zero
shares in our cross-sectíon data, taro types of models are used. The first ts the single-
equation censored regressfon model, of which the Tobit modet is a specfaL case. We
estimate and test severaZ parametrfc and semi-parametríc extensíons of the Tobft modeZ.
Although the parametric modeZs appear to be misspeciffed, estimated income elasticities o …