RDP 8607: The Expectations Theory of the Term Structure and Short-Term Interest Rates in Australia Equation (3)

R t =θ+λ r t +( 1λ ) r t+1 + v t+1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOuamaaBa aaleaacaqG0baabeaakiabg2da9iabeI7aXjabgUcaRiabeU7aSjaa dkhadaWgaaWcbaGaaeiDaaqabaGccqGHRaWkdaqadaqaaiaaigdacq GHsislcqaH7oaBaiaawIcacaGLPaaacaWGYbWaaSbaaSqaaiaadsha cqGHRaWkcaaIXaaabeaakiabgUcaRiaadAhadaWgaaWcbaGaamiDai abgUcaRiaaigdaaeqaaaaa@4D99@