RBA Annual Conference – 2015
Equation (3)
E
i
t
*
=
β
1
H
E
i
,
t
−
1
+
γ
x
i
,
t
−
1
+
φ
z
i
t
+
ε
i
t
,
ε
i
t
~
N
(
0
,
σ
2
)
,
E
i
t
=
{
1
(
Sole
trader
)
if
μ
0
=
−
∞
<
E
i
t
*
≤
μ
1
2
(
2
−
19
)
if
μ
1
<
E
i
t
*
≤
μ
2
3
(
20
+
)
if
μ
2
<
E
i
t
*
≤
μ
3
=
∞
,
Pr
(
E
i
t
=
j
)
=
Pr
(
μ
j
−
1
<
E
i
t
*
≤
μ
j
)
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWGfb Waa0baaSqaaiaadMgacaWG0baabaGaaiOkaaaakiabg2da9iabek7a InaaBaaaleaacaaIXaaabeaakiaadIeacaWGfbWaaSbaaSqaaiaadM gacaGGSaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeq4SdCgc bmGaa8hEamaaBaaaleaacaWGPbGaaiilaiaadshacqGHsislcaaIXa aabeaakiabgUcaRiabeA8aQjaa=PhadaWgaaWcbaGaamyAaiaadsha aeqaaOGaey4kaSIaeqyTdu2aaSbaaSqaaiaadMgacaWG0baabeaaki aacYcacqaH1oqzdaWgaaWcbaGaamyAaiaadshaaeqaaOGaaiOFaiaa d6eadaqadaqaaiaaicdacaGGSaGaeq4Wdm3aaWbaaSqabeaacaaIYa aaaaGccaGLOaGaayzkaaGaaiilaaqaaiaadweadaWgaaWcbaGaamyA aiaadshaaeqaaOGaeyypa0ZaaiqaaeaafaqaaeWaeaaaaeaacaaIXa aabaWaaeWaaeaacaqGtbGaae4BaiaabYgacaqGLbGaaGPaVlaabsha caqGYbGaaeyyaiaabsgacaqGLbGaaeOCaaGaayjkaiaawMcaaaqaai aabMgacaqGMbaabaGaaGPaVlabeY7aTnaaBaaaleaacaaIWaaabeaa kiabg2da9iabgkHiTiabg6HiLkabgYda8iaadweadaqhaaWcbaGaam yAaiaadshaaeaacaGGQaaaaKaaGjabgsMiJkabeY7aTPWaaSbaaSqa aiaaigdaaeqaaaGcbaGaaGOmaaqaamaabmaabaGaaGOmaiabgkHiTi aaigdacaaI5aaacaGLOaGaayzkaaaabaGaaeyAaiaabAgaaeaacaaM c8UaeqiVd02aaSbaaSqaaiaaigdaaeqaaOGaeyipaWJaamyramaaDa aaleaacaWGPbGaamiDaaqaaiaacQcaaaqcaaMaeyizImQaeqiVd0Mc daWgaaWcbaGaaGOmaaqabaaakeaacaaIZaaabaWaaeWaaeaacaaIYa GaaGimaiabgUcaRaGaayjkaiaawMcaaaqaaiaabMgacaqGMbaabaGa eqiVd02aaSbaaSqaaiaaikdaaeqaaOGaeyipaWJaamyramaaDaaale aacaWGPbGaamiDaaqaaiaacQcaaaqcaaMaeyizImQaeqiVd0McdaWg aaWcbaGaaG4maaqabaGccqGH9aqpcqGHEisPaaaacaGL7baacaGGSa aabaGaciiuaiaackhadaqadaqaaiaadweadaWgaaWcbaGaamyAaiaa dshaaeqaaOGaeyypa0JaamOAaaGaayjkaiaawMcaaiabg2da9iGacc facaGGYbWaaeWaaeaacqaH8oqBdaWgaaWcbaGaamOAaiabgkHiTiaa igdaaeqaaOGaeyipaWJaamyramaaDaaaleaacaWGPbGaamiDaaqaai aacQcaaaGccqGHKjYOcqaH8oqBdaWgaaWcbaGaamOAaaqabaaakiaa wIcacaGLPaaacaGGUaaaaaa@CC87@