Haldrup, Niels - School of Economics and Management, University of Aarhus
competition, Brussels, February 2003, see http://europa.eu.int/comm/enterprise/library/lib-
competition …. The price level can be written as
p
t
= p
0
+ µt +
t
X
j=1
ε
j
(1)
whereby it can be seen that prices will have a linear … representation. A
typical way of writing a so-called trend stationary process is by
p
t
= α
t
p
0
+ µt +
t
X
j=1
α
j
ε
t−j
,α<1. (2 …