I am trying to set up the likelihood function following Wooldridge (2005)'s dynamic probit estimator using Matlab (this is my first time using Matlab, and I am doing this for practice), but I am not sure how to model the "integrating out a_i" part of the likelihood function, where
c_i (the random effect) = alpha0+alpha1y_i0+z_ialpha2+a_i, a_i~normal(0, sigma_a^2).
Could someone give me a hint on how to do this?
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No. How could we? Pretend you're looking at it from our point of view. Would you be able to answer that if you were us?
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