RBA Annual Conference – 2018
Equation
Y
t
=
Λ
F
t
+
ε
t
,
ε
t
~
N
(
0
,
R
)
,
F
t
=
Φ
F
t
−
1
+
G
η
t
,
η
t
~
N
(
0
,
Q
)