RDP 2008-10: Solving Linear Rational Expectations Models with Predictable Structural Changes
Equation (19)
w
¯
2
,
T
=
(
Λ
¯
22
−
Ω
¯
22
)
−
1
Q
¯
2
C
¯
−
E
1
∑
j
=
1
∞
¯
(
Ω
¯
22
−
1
Λ
¯
22
)
j
−
1
Ω
¯
22
−
1
Q
¯
2
Ψ
¯
ε
T
+
j
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