Modeling and estimating autocorrelated discrete data can be challenging. In this paper, we use an autoregressive panel … probit model where the autocorrelation in the discrete variable is driven by the autocorrelation in the latent variable. In … such a non-linear model, the autocorrelation in an unobserved variable results in an intractable likelihood containing high …

functions for the panel probit model. The analysis is motivated by the complexity of maximum likelihood estimation and the … is unnecessary. In this note, we reconsider maximum likelihood based estimation of their panel probit model then examine … some extensions which can exploit the heterogeneity contained in their panel data set. Empirical results are obtained using …