Bullard, James Brian (contributor); … - 2004 - [Elektronische Ressource]
@uoregon.edu.
§
Email: smsh4@cam.ac.uk. Financial support from ESRC grant RES-000-23-1152 is
gratefully acknowledged.
1 Introduction
1 … the assumption
ψ
t,j
= ρ
j
with 0 <ρ<1,
that is, constant geometric decay at rate ρ for all t, j.Then
ξ
t
=
X
∞
j=0
ψ
t …−j,j
η
t−j
=
X
∞
j=0
ρ
j
η
t−j
=(1−ρL)
−1
η
t
and the total judgemental adjustment in y
e
t+1
satisfies
(1−ρL)ξ
t
= η
t
(3 …