Derive the log-likelihood function for the model in (13-18), assuming that it and ui are normally distributed.

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Derive the log-likelihood function for the model in (13-18), assuming that εit and ui are normally distributed.

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Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

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Question Posted: Nov 11, 2010 02:51 AM

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Derive the log-likelihood function for the model in (13-18), assuming that it and ui are normally distributed.

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Hints Write the loglikelihood function as InL 1 InL where InL is the loglikelihood function for the T observations in group i These T observations are ...View the full answer

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