Maximising log likelihood functions

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henry
Posts: 13
Joined: Sun Mar 29, 2009 9:38 am

Maximising log likelihood functions

Postby henry » Sun Mar 29, 2009 10:33 am

Hi all,

I'm new to eviews and am struggling to understand the "logl" function. I would be very grateful if someone could help me out. I would like to solve the function in the file attached (couldn't figure out a way to get it on here directly).

Could anyone point me in the right direction?

Thanks,
Henry
Attachments
MLE equation.doc
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QSnakecharmer
Posts: 13
Joined: Mon Mar 30, 2009 11:57 am

Re: Maximising log likelihood functions

Postby QSnakecharmer » Mon Mar 30, 2009 1:12 pm

Well, I’ve only tried once to use the Logl, and I couldn’t tell you much, but in my opinion first you have to define the function x’B that you want to maximize (I guess you already have it), replaced in the likelihood function, and then you have to solve the expanded form (the logarithm of maximum likelihood) replacing the x’B expression with your equation. When you have done the math, you have to express it in eviews code on the Logl object. There’s a sample Logl example in Eviews that is very illustrative, you could take a look at it.


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