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21ff
2008 Jun 16
1
Error in maximum likelihood estimation.
...mastar
loglik <- (-0.5 * nrow(x) *(log(2*pi) + log(sigma2))
-0.5 * sum(( y - x %*% beta + z %*% delta)^2/sigma2)
-sum(log(pnorm(d))) + sum(log(pnorm(dstar))))
return(-loglik)
}
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Loglikelihood function is from page 21of Battese and Coelli (1993).
(You can download this article at http://www.une.edu.au/economics/publications/econometrics/emwp69.PDF
)
To test the above function with an artificial data set, I created the
following data.frame.
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x1 <- abs(rnorm...