RDP 2011-01: Estimating Inflation Expectations with a Limited Number of Inflation-indexed Bonds
Equation (7)
H
2
(
x
t
)
=
exp
(
−
α
¯
τ
−
β
¯
′
τ
(
e
−
K
(
s
−
t
)
x
t
+
(
I
−
e
−
K
(
s
−
t
)
)
μ
)
+
1
2
β
¯
′
τ
Ω
s
−
t
β
¯
τ
)
.
MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamisaiaaik dadaqadaqaaiaabIhadaWgaaWcbaGaamiDaaqabaaakiaawIcacaGL PaaacqGH9aqpciGGLbGaaiiEaiaacchadaqadaqaaiabgkHiTiqbeg 7aHzaaraWaaSbaaSqaaiabes8a0bqabaGccqGHsislcuaHYoGygaqe gaqbamaaBaaaleaacqaHepaDaeqaaOWaaeWaaeaacaWGLbWaaWbaaS qabeaacqGHsislcaWGlbWaaeWaaeaacaWGZbGaeyOeI0IaamiDaaGa ayjkaiaawMcaaaaakiaabIhadaWgaaWcbaGaamiDaaqabaGccqGHRa WkdaqadaqaaiaadMeacqGHsislcaWGLbWaaWbaaSqabeaacqGHsisl caWGlbWaaeWaaeaacaWGZbGaeyOeI0IaamiDaaGaayjkaiaawMcaaa aaaOGaayjkaiaawMcaaiabeY7aTbGaayjkaiaawMcaaiabgUcaRmaa laaabaGaaGymaaqaaiaaikdaaaGafqOSdiMbaeHbauaadaWgaaWcba GaeqiXdqhabeaakiabfM6axnaaBaaaleaacaWGZbGaeyOeI0IaamiD aaqabaGccuaHYoGygaqeamaaBaaaleaacqaHepaDaeqaaaGccaGLOa GaayzkaaGaaiOlaaaa@7130@