Abstract
This paper proposes the generalized method of moment estimation of truncated or censored regression model, and applies this procedure to the recreational demand model estimation. In a typical limited dependent variable regression, the conditional mean of error distribution is no longer zero. However, by symmetric trimming of error distribution, we can obtain zero conditional mean, and the orthogonality conditions for GMM estimation. Travel cost model (TOM) is estimated using the symmetrically trimmed GMM estimation. Bootstrap is used to simulate the finite sample distribution of GMM estimates.