Question: 2. (a) Derive the likelihood function for the probit model. Hint: Remember that the likelihood function is QN iD1 p.yi j; h/ and use (9.7).

2.

(a) Derive the likelihood function for the probit model. Hint: Remember that the likelihood function is QN iD1 p.yi jþ; h/ and use (9.7).

(b) Verify that the identification problem discussed in Section 9.4 occurs with the probit model.

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