RDP 9611: A Markov-Switching Model of Inflation in Australia Equation (A.2)

f( y t | S t = s t ,…, y t−1 ,… )=[ 1 2πσ exp[ − 1 2 σ 2 ( y t − α 0 y t−1 ) ] 1 2πσ exp[ − 1 2 σ 2 ( y t − α 1 y t−1 ) ] ]. MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOzamaabm aabaGaamyEamaaBaaaleaacaWG0baabeaakiaacYhacaWGtbWaaSba aSqaaiaadshaaeqaaOGaeyypa0Jaam4CamaaBaaaleaacaWG0baabe aakiaacYcacqWIMaYscaGGSaGaamyEamaaBaaaleaacaWG0bGaeyOe I0IaaGymaaqabaGccaGGSaGaeSOjGSeacaGLOaGaayzkaaGaeyypa0 ZaamWaaeaafaqabeGabaaabaWaaSaaaeaacaaIXaaabaWaaOaaaeaa caaIYaGaeqiWdaNaeq4WdmhaleqaaaaakiGacwgacaGG4bGaaiiCam aadmaabaGaeyOeI0YaaSaaaeaacaaIXaaabaGaaGOmaiabeo8aZnaa CaaaleqabaGaaGOmaaaaaaGcdaqadaqaaiaadMhadaWgaaWcbaGaam iDaaqabaGccqGHsislcqaHXoqydaWgaaWcbaGaaGimaaqabaGccaWG 5bWaaSbaaSqaaiaadshacqGHsislcaaIXaaabeaaaOGaayjkaiaawM caaaGaay5waiaaw2faaaqaamaalaaabaGaaGymaaqaamaakaaabaGa aGOmaiabec8aWjabeo8aZbWcbeaaaaGcciGGLbGaaiiEaiaacchada WadaqaaiabgkHiTmaalaaabaGaaGymaaqaaiaaikdacqaHdpWCdaah aaWcbeqaaiaaikdaaaaaaOWaaeWaaeaacaWG5bWaaSbaaSqaaiaads haaeqaaOGaeyOeI0IaeqySde2aaSbaaSqaaiaaigdaaeqaaOGaamyE amaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaaakiaawIcacaGLPa aaaiaawUfacaGLDbaaaaaacaGLBbGaayzxaaGaaiOlaaaa@8100@