Here is the two-equation model in brief: student i goes to Catholic school (Ci = 1) if
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Here is the two-equation model in brief: student i goes to Catholic school
(Ci = 1) if IsCatia + Xib + Ui > 0, and graduates if Ciα + Xiβ + Vi > 0.
(a) Which parameter tells you the effect of Catholic schools?
(b) The Ui and Vi are variables. Options (more than one may be right):
data random latent dummy observable
(c) What are the assumptions on Ui and Vi?
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