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Econ 620 Maximum Likelihood Estimation (MLE) Definition of MLE • Consider a parametric model in which the joint distribution of Y =(y1,y2,···,yn)hasadensity (Y;θ) with respect to a dominating measure µ, where θ ∈ Θ ⊂ RP.Definition 1 A maximum likelihood estimator of θ is a solution to the maximization problem max θ∈Θ (y;θ)• Note that the solution to an optimization ...
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