Skip to content
RDP 2008-10: Solving Linear Rational Expectations Models with Predictable Structural Changes
Equation (21)
y
^
t
=
−
σ
−
1
(
r
t
−
E
t
π
t
+
1
)
+
E
t
y
^
t
+
1
+
(
1
−
ρ
a
)
σ
a
^
t
−
1
σ
ln
β
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGabmyEayaaja WaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaeyOeI0Iaeq4Wdm3aaWba aSqabeaacqGHsislcaaIXaaaaOWaaeWaaeaacaWGYbWaaSbaaSqaai aadshaaeqaaOGaeyOeI0IaamyramaaBaaaleaacaWG0baabeaakiab ec8aWnaaBaaaleaacaWG0bGaey4kaSIaaGymaaqabaaakiaawIcaca GLPaaacqGHRaWkcaWGfbWaaSbaaSqaaiaadshaaeqaaOGabmyEayaa jaWaaSbaaSqaaiaadshacqGHRaWkcaaIXaaabeaakiabgUcaRmaala aabaWaaeWaaeaacaaIXaGaeyOeI0IaeqyWdi3aaSbaaSqaaiaadgga aeqaaaGccaGLOaGaayzkaaaabaGaeq4WdmhaaiqadggagaqcamaaBa aaleaacaWG0baabeaakiabgkHiTmaalaaabaGaaGymaaqaaiabeo8a ZbaaciGGSbGaaiOBaiabek7aIbaa@6182@