RDP 8601: Classical Models and Unobserved Aggregates Equation

y t = B t p t + ι t z ^ t =β y t +γ p t +δ B t + ζ t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacaGI5b WaaSbaaSqaaiaakshaaeqaaOGaeyypa0JaaOOqamaaBaaaleaacaGI 0baabeaakiabgkHiTiaakchadaWgaaWcbaGaaOiDaaqabaGccqGHRa WkcaGI5oWaaSbaaSqaaiaakshaaeqaaaGcbaGabmOEayaajaWaaSba aSqaaiaakshaaeqaaOGaeyypa0JaeqOSdiMaaOyEamaaBaaaleaaca GI0baabeaakiabgUcaRiabeo7aNjaakchadaWgaaWcbaGaaOiDaaqa baGccqGHRaWkcqaH0oazcaGIcbWaaSbaaSqaaiaakshaaeqaaOGaey 4kaSIaaOOTdmaaBaaaleaacaGI0baabeaaaaaa@5581@