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

w 2 , t = M w 2 , t + 1 − Ω 22 − 1 x 2 , t + 1 = M 2 w 2 , t + 2 − M Ω 22 − 1 x 2 , t + 2 − Ω 22 − 1 x 2 , t + 1 = … = − ∑ j = 1 ∞ M j − 1 Ω 22 − 1 x 2 , t + j MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaWG3b WaaSbaaSqaaiaaikdacaGGSaGaamiDaaqabaGccqGH9aqpcaWGnbGa am4DamaaBaaaleaacaaIYaGaaiilaiaadshacqGHRaWkcaaIXaaabe aakiabgkHiTiabfM6axnaaDaaaleaacaaIYaGaaGOmaaqaaiabgkHi TiaaigdaaaGccaWG4bWaaSbaaSqaaiaaikdacaGGSaGaamiDaiabgU caRiaaigdaaeqaaaGcbaGaeyypa0JaamytamaaCaaaleqabaGaaGOm aaaakiaadEhadaWgaaWcbaGaaGOmaiaacYcacaWG0bGaey4kaSIaaG OmaaqabaGccqGHsislcaWGnbGaeuyQdC1aa0baaSqaaiaaikdacaaI YaaabaGaeyOeI0IaaGymaaaakiaadIhadaWgaaWcbaGaaGOmaiaacY cacaWG0bGaey4kaSIaaGOmaaqabaGccqGHsislcqqHPoWvdaqhaaWc baGaaGOmaiaaikdaaeaacqGHsislcaaIXaaaaOGaamiEamaaBaaale aacaaIYaGaaiilaiaadshacqGHRaWkcaaIXaaabeaaaOqaaiabg2da 9iablAcilbqaaiabg2da9iabgkHiTmaaqahabaGaamytamaaCaaale qabaGaamOAaiabgkHiTiaaigdaaaGccqqHPoWvdaqhaaWcbaGaaGOm aiaaikdaaeaacqGHsislcaaIXaaaaOGaamiEamaaBaaaleaacaaIYa GaaiilaiaadshacqGHRaWkcaWGQbaabeaaaeaacaWGQbGaeyypa0Ja aGymaaqaaiabg6HiLcqdcqGHris5aaaaaa@82E1@