Sigma u and ln sigma u in Dynamic random effects probit with wooldrige intial conditions
Hii everyone
I am using a random effects probit with Wooldrige's initial conditions methodology and despite after controlling multiple individual specific factors my probit model gives a log sigma u value which statistically different from 0 or sigma_u statistically greater than 1 (1.18 to be specific with SE of 0.021). Are the results valid ? I have seen papers reporting such values of sigma_u but how much valid are the coefficients , I would be really grateful if someone sheds some light.
I am using a random effects probit with Wooldrige's initial conditions methodology and despite after controlling multiple individual specific factors my probit model gives a log sigma u value which statistically different from 0 or sigma_u statistically greater than 1 (1.18 to be specific with SE of 0.021). Are the results valid ? I have seen papers reporting such values of sigma_u but how much valid are the coefficients , I would be really grateful if someone sheds some light.
