RDP 2008-10: Solving Linear Rational Expectations Models with Predictable Structural Changes Equation (17)

Γ ˜ 0 , 1 y 1 = C ˜ 1 + Γ ˜ 1 , 1 y 0 + Ψ ˜ 1 ε 1 t = 1 Γ 0 , t y t = C t + Γ 1 , t y t − 1 + Π η t + Ψ t ( ε t u + ε t a ) 2 ≤ t ≤ T Γ ˜ 0 y t = C ¯ + Γ ¯ 1 y t − 1 + Π ¯ η t + Ψ ¯ ε t t ≥ T + 1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaqbaeaabmGaaa qaaiqbfo5ahzaaiaWaaSbaaSqaaiaaicdacaGGSaGaaGymaaqabaGc caWG5bWaaSbaaSqaaiaaigdaaeqaaOGaeyypa0Jabm4qayaaiaWaaS baaSqaaiaaigdaaeqaaOGaey4kaSIafu4KdCKbaGaadaWgaaWcbaGa aGymaiaacYcacaaIXaaabeaakiaadMhadaWgaaWcbaGaaGimaaqaba GccqGHRaWkcuqHOoqwgaacamaaBaaaleaacaaIXaaabeaakiabew7a LnaaBaaaleaacaaIXaaabeaaaOqaaiaadshacqGH9aqpcaaIXaaaba Gaeu4KdC0aaSbaaSqaaiaaicdacaGGSaGaamiDaaqabaGccaWG5bWa aSbaaSqaaiaadshaaeqaaOGaeyypa0Jaam4qamaaBaaaleaacaWG0b aabeaakiabgUcaRiabfo5ahnaaBaaaleaacaaIXaGaaiilaiaadsha aeqaaOGaamyEamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccq GHRaWkcqGHpis1cqaH3oaAdaWgaaWcbaGaamiDaaqabaGccqGHRaWk cqqHOoqwdaWgaaWcbaGaamiDaaqabaGcdaqadaqaaiabew7aLnaaDa aaleaacaWG0baabaGaamyDaaaakiabgUcaRiabew7aLnaaDaaaleaa caWG0baabaGaamyyaaaaaOGaayjkaiaawMcaaaqaaiaaikdacqGHKj YOcaWG0bGaeyizImQaamivaaqaaiqbfo5ahzaaiaWaaSbaaSqaaiaa icdaaeqaaOGaamyEamaaBaaaleaacaWG0baabeaakiabg2da9iqado eagaqeaiabgUcaRiqbfo5ahzaaraWaaSbaaSqaaiaaigdaaeqaaOGa amyEamaaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRaWkcu GHpis1gaqeaiabeE7aOnaaBaaaleaacaWG0baabeaakiabgUcaRiqb fI6azzaaraGaeqyTdu2aaSbaaSqaaiaadshaaeqaaaGcbaGaamiDai abgwMiZkaadsfacqGHRaWkcaaIXaaaaaaa@965E@