RDP 8708: Risk Effects Versus Monetary Effects in the Determination of Short-Term Interest Rates Equation (8)

log b t ( 1 )log b t * ( 1 )=α( log b t−1 ( 1 )log b t−1 * ( 1 ) )+ 1 δ ε t + η t . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaaeiBaiaab+ gacaqGNbGaaGPaVlaabkgadaWgaaWcbaGaaeiDaaqabaGcdaqadaqa aiaabgdaaiaawIcacaGLPaaacaaMc8UaaeylaiaaykW7caqGSbGaae 4BaiaabEgacaaMc8UaaeOyamaaDaaaleaacaqG0baabaGaaeOkaaaa kmaabmaabaGaaeymaaGaayjkaiaawMcaaiaaykW7caqG9aGaaGPaVl aabg7adaqadaqaaiaabYgacaqGVbGaae4zaiaaykW7caqGIbWaaSba aSqaaiaabshacaqGTaGaaeymaaqabaGcdaqadaqaaiaabgdaaiaawI cacaGLPaaacaaMc8UaaeylaiaaykW7caqGSbGaae4BaiaabEgacaaM c8UaaeOyamaaDaaaleaacaqG0bGaaeylaiaabgdaaeaacaqGQaaaaO WaaeWaaeaacaqGXaaacaGLOaGaayzkaaaacaGLOaGaayzkaaGaaGPa VlaabUcacaaMc8+aaSaaaeaacaqGXaaabaGaaeiTdaaacaqG1oWaaS baaSqaaiaabshaaeqaaOGaaGPaVlaabUcacaaMc8Uaae4TdmaaBaaa leaacaqG0baabeaakiaab6cacaaMc8oaaa@7B64@