Panel threshold regression (hansen 1999) programm?

I am trying to estimate a threshold regression model. I want to make use of the Hansen Matlab code on "Threshold Effects in Non-Dynamic Panels: Estimation, Testing and Inference".

However, i want to understand this equation in red plz?

What represent the number 0.1 and 0.9 ? can anyone help me?

Answer 1

[Francesca De Vincenzo]

Ho Makouf, did you fix your problem? I met the same diffocult right now, would appreciate if you could help me.