RDP 2008-10: Solving Linear Rational Expectations Models with Predictable Structural Changes
Equation (16)
y
t
=
S
0
+
S
1
y
t
−
1
+
S
2
ε
t
+
S
y
E
t
∑
j
=
1
∞
M
j
−
1
Ω
22
−
1
Q
2
Ψ
ε
t
+
j
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