Latent Variable

又叫做“潜变量”

$$y^{\ast }={\beta }_0+{\beta }_1{x}_1+...+{\beta }_k{x}_{k+e}$$ $$y=1if{y}^{\ast }>0$$

Index Model can be derived from Latent Variable Model.

$$Y=\mathbb{I}\{Y^{\ast }>0\}$$ $$Y^{\ast }=X^{\prime }\beta +ee\sim G$$

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Reference