RDP 2003-04: Identifying the Efficacy of Central Bank Interventions: Evidence from Australia Equation (11)

Δ e t = c e +αIN T t +γ z t + ε t + λ ee,1 Δ e t−1 + λ ee,2 Δ e t−2 + λ eINT,1 IN T t−1 + λ eINT,2 IN T t−2 IN T t ∗ = c INT +βΔ e t + z t + η t + λ INTe,1 Δ e t−1 + λ INTe,2 Δ e t−2 + λ INTINT,1 IN T t−1 ∗ + λ INTINT,2 IN T t−2 ∗ IN T t ={ ℑ( | IN T t ∗ − c INT |> INT ¯ l )⋅IN T t ∗ , for t< t ^ ℑ( | IN T t ∗ − c INT |> INT ¯ h )⋅IN T t ∗ , for t≥ t ^ MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@1257@