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?
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?