RDP 2008-10: Solving Linear Rational Expectations Models with Predictable Structural Changes Equation (20)

( Γ ˜ 0 , 1 0 … … 0 − Γ 1 , 2 Γ 0 , 2 ⋱ ⋮ 0 − Γ 1 , 3 Γ 0 , 3 ⋱ ⋮ ⋮ ⋱ ⋱ ⋱ 0 0 … 0 − Γ 1 , T Γ 0 , T 0 … … 0 Z ¯ ′ 2 ) ( y 1 ⋮ y T ) = ( C ˜ 1 + Γ ˜ 1 , 1 y 0 + Ψ ˜ 1 ε 1 a C 2 + Ψ 2 ε 2 a ⋮ C T + Ψ T ε T a w ¯ 2 , T ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWaaeWaaeaafa qabeGbfaaaaaqaaiqbfo5ahzaaiaWaaSbaaSqaaiaaicdacaGGSaGa aGymaaqabaaakeaacaaIWaaabaGaeSOjGSeabaGaeSOjGSeabaGaaG imaaqaaiabgkHiTiabfo5ahnaaBaaaleaacaaIXaGaaiilaiaaikda aeqaaaGcbaGaeu4KdC0aaSbaaSqaaiaaicdacaGGSaGaaGOmaaqaba aakeaacqWIXlYtaeaaaeaacqWIUlstaeaacaaIWaaabaGaeyOeI0Ia eu4KdC0aaSbaaSqaaiaaigdacaGGSaGaaG4maaqabaaakeaacqqHto WrdaWgaaWcbaGaaGimaiaacYcacaaIZaaabeaaaOqaaiablgVipbqa aiabl6Uinbqaaiabl6UinbqaaiablgVipbqaaiablgVipbqaaiablg VipbqaaiaaicdaaeaacaaIWaaabaGaeSOjGSeabaGaaGimaaqaaiab gkHiTiabfo5ahnaaBaaaleaacaaIXaGaaiilaiaadsfaaeqaaaGcba Gaeu4KdC0aaSbaaSqaaiaaicdacaGGSaGaamivaaqabaaakeaacaaI WaaabaGaeSOjGSeabaGaeSOjGSeabaGaaGimaaqaaiqadQfagaqega qbamaaBaaaleaacaaIYaaabeaaaaaakiaawIcacaGLPaaadaqadaqa auaabeqadeaaaeaacaWG5bWaaSbaaSqaaiaadMgaaeqaaaGcbaGaeS O7I0eabaGaamyEamaaBaaaleaacaWGubaabeaaaaaakiaawIcacaGL PaaacqGH9aqpdaqadaqaauaabeqafeaaaaqaaiqadoeagaacamaaBa aaleaacaaIXaaabeaakiabgUcaRiqbfo5ahzaaiaWaaSbaaSqaaiaa igdacaGGSaGaaGymaaqabaGccaWG5bWaaSbaaSqaaiaaicdaaeqaaO Gaey4kaSIafuiQdKLbaGaadaWgaaWcbaGaaGymaaqabaGccqaH1oqz daqhaaWcbaGaaGymaaqaaiaadggaaaaakeaacaWGdbWaaSbaaSqaai aaikdaaeqaaOGaey4kaSIaeuiQdK1aaSbaaSqaaiaaikdaaeqaaOGa eqyTdu2aa0baaSqaaiaaikdaaeaacaWGHbaaaaGcbaGaeSO7I0eaba Gaam4qamaaBaaaleaacaWGubaabeaakiabgUcaRiabfI6aznaaBaaa leaacaWGubaabeaakiabew7aLnaaDaaaleaacaWGubaabaGaamyyaa aaaOqaaiqadEhagaqeamaaBaaaleaacaaIYaGaaiilaiaadsfaaeqa aaaaaOGaayjkaiaawMcaaaaa@A2D7@