I am trying to build a transitions matrix from Panel data observations in order to obtain the ML estimators of a weighted transitions matrix. A key step is obtaining the individual likelihood function for individuals. Say you have the following data frame:
ID Feature1 Feature2 Transition
120421006 10000 1 ab
120421006 12000 0 ba
120421006 10000 1 ab
123884392 3000 1 ab
123884392 2000 0 ba
908747738 1000 1 ab
The idea is to return, for each agent, the log-likelihood of his path. For agent 120421006, for instance, this boils down to (ignoring the initial term)
LL = log(exp(Yab)/1 + exp(Yab)) + log(exp(Yba) /(1 + exp(Yba))) + log(exp(Yab)/1 + exp(Yab))
i.e,
log(exp(Y_transition)/(1 + exp(Y_transition)))
where Y_transition = xFeature1 + yFeature2 for that transition, and x and y are unknowns.
For example, for individual 120421006, this would boil down to an expression with three elements, since he transitions thrice, and the function would return
LL = log(exp(10000x + 1y)/ 1 + exp(10000x + 1y)) +
log(exp(12000x + 0y)/ 1 + exp(12000x + 0y)) +
log(exp(10000x + 1y)/ 1 + exp(10000x + 1y))
And here's the catch: I need x and y to return as unknowns, since the objective is to obtain a sum over the likelihoods of all individuals in order to pass it to an ML estimator. How would you automate a function that returns this output for all IDs?
Many thanks in advance