Derive the log-likelihood function for the model in (13-18), assuming that it and ui are normally distributed.
Question:
Derive the log-likelihood function for the model in (13-18), assuming that εit and ui are normally distributed.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
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
Answered By
John Aketch
I have a 10 years tutoring experience and I have helped thousands of students to accomplish their educational endeavors globally. What interests me most is when I see my students being succeeding in their classwork. I am confident that I will bring a great change to thins organization if granted the opportunity. Thanks
5.00+
8+ Reviews
18+ Question Solved
Related Book For
Question Posted:
Students also viewed these Econometric questions
-
The log likelihood function for the linear regression model with normally distributed disturbances is shown in Example 4.6. Show that at the maximum likelihood estimators of b for and e'e/n for 2 ,...
-
The yearly log returns on a stock are normally distributed with mean 0.1 and standard deviation 0.2. The stock is selling at $100 today. What is the probability that one year from now it is selling...
-
The daily log returns on a stock are normally distributed with mean 0.0002 and standard deviation 0.03. The stock price is now $97. What is the probability that it will exceed $100 after 20 trading...
-
A chemical processing plant has a network of pipes that are used to transfer liquid chemical products from one part of the plant to another. The following pipe network has pipe flow capacities in...
-
Talia's Tutus bought some equipment for a data network for $40,000 that will be depreciated in asset Class 46, which has a CCA rate of 30%. This firm's tax bracket is 35%. a. Find the CCA amount each...
-
Cooper Partnership, a calendar year partnership, made qualifying rehabilitation expenditures to a building that it has used in its business for eight years. These improvements were placed in service...
-
Is the collision in Example 10.7 elastic? Data from Example 10.7 Pucks 1 and 2 slide on ice and collide. The inertia of puck 2 is twice that of puck 1 . Puck 1 initially moves at \(1.8 \mathrm{~m} /...
-
After numerous interviews, prototypes, data flow diagrams, data dictionary entries, and UML diagrams have been completed, Anna and Chip both start work on the entity-relationship model. Ill be...
-
which muscle were use to extend and splay your finger outward?
-
Robertos Honey Farm in Chile makes five types of honey: cream, filtered, pasteurized, mlange (a mixture of several types), and strained, which are sold in 1 kilogram or 0.5 kilogram glass containers,...
-
Use the data in Section 13.9.7 (the Grunfeld data) to fit the random and fixed effect models. There are five firms and 20 years of data for each. Use the F, LM, and/or Hausman statistics to determine...
-
Unbalanced design for random effects, suppose that the random effects model of Section 13.4 is to be estimated with a panel in which the groups have different numbers of observations. Let Ti be the...
-
Using the information shown in Exhibit 18.1, create a spreadsheet to compute the covariance between sales and NPS.
-
Five New York state agencies are the City University of NY, the Council on Children and Families, the Department of Civil Service, the Department of Correction, and the Department of Education. 1....
-
1.Describe a situation in which you gained increased important understanding as a result of conflict in a group you were part of. 2.List the headlines of stories on one of the daily newspapers or...
-
What is the primary characteristic of pile foundations fixed at both the top and bottom in terms of load distribution?
-
Procurement Manager, LESLIE has a complex construction project has a seller that is not performing in accordance with the contract. Specifically the products delivered by the seller so far do not...
-
> What does Isadora Duncan's Modern dance technique emphasize, look like? What is Martha Graham's Modern dance technique known for? Why were Ruth St. Denis oriental dances problematic? What were...
-
The data presented in Table 5.21 depict the replacment decision for an asset. The question is whether to continue to use the old asset or to replace it with a new asset. Assuming a weighted average...
-
What is taxable income, and what is the formula for determining taxable income?
-
Goodwin introduced two key ideas that were often repeated and used in the nineteenth century. Explain why a government in a capitalist society would never address the problems of capitalism.
-
Example 4.10 presents a regression model that is used to predict the auction prices of Monet paintings. The most expensive painting in the sample sold for $33.0135M (log = 17.3124). The height and...
-
A multiple regression of y on a constant x 1 and x 2 produces the following results: y = 4 + 0.4x 1 + 0.9x 2 , R 2 = 8/60, e'e = 520, n = 29, Test the hypothesis that the two slopes sum to 1. [29 0 0...
-
Using the results in Exercise 1, test the hypothesis that the slope on x 1 is 0 by running the restricted regression and comparing the two sums of squared deviations. Test the hypothesis that the two...
-
Siya Dlamini is a partner at a law firm. He is 4 0 years old and unmarried. He has incurred a number of expenses during the 2 0 2 3 year of assessment. He would like to know if they are deductible in...
-
Ahmed was doing experiment with the laboratory technician and prepared standard solution in standard measuring flask by dissolving 6.5 g C3(PO4)2 in 550 ml water after that he added 3.5 g more...
-
Construct solid-liquid and solid-vapour phase boundaries for carbon tetrachloride CCl 2 given the following: Density of solid CCl2 = 1.809 g/cm Density of liquid CCl2 = 1.59 g/cm Enthalpy of fusion =...
Study smarter with the SolutionInn App