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Abstract

This study has demonstrated the use of a type 2 tobit model to impute the incomes for nonresponding households. The imputed incomes generated from the type 2 tobit model for nonresponding households indicate that average incomes of nonresponding households are slightly higher than those of responding households. Furthermore, this study demonstrates that under the assumption that the predicted incomes derived from the type 2 tobit model are accurate, the deletion of nonresponsidng households would cause an overestimation of the impact of income on food expenditures for households with annual incomes of less than $20,000.

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