Danis, Michelle A. (contributor); … - 2005
, options available and the vector of variables that explain the
decision made for loan i is x
i
. The probability of observing … a particular loan outcome is given by
(1) ()
∑
−
=
==
1
0
'
'
Pr
J
k
x
x
i
ik
ij
e
e
jYob
β
β
.
The parameters, β …)
∑
=
+
+
=
L
l
Iz
Iz
l
lll
lll
e
e
ob
1
Pr
τγ
τγ
,
(6) , and
∑
=
=
l
lj
J
j
x
l
eI
1
|
ln
β
(7)
∑
=
=
l
lj
lj
J
j
x
x
lj
e
e
ob …