Question: Take the endogenous probit model of Section 25.12. (a) Verify equation (25.16). (b) Explain why is independent of e2 and Y2. (c) Verify that

Take the endogenous probit model of Section 25.12.

(a) Verify equation (25.16).

(b) Explain why " is independent of e2 and Y2.

(c) Verify that the conditional distribution of Y ¤

1 is N

¡

¹(µ) ,¾2

"

¢

.

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