RDP 2011-01: Estimating Inflation Expectations with a Limited Number of Inflation-indexed Bonds Equation

E t ( exp ( − ∫ t t + τ π s d s ) ) = exp ( − ∫ 0 τ ρ ′ e − K s x t d s − ∫ 0 τ ρ 0 + ρ ′ ( I − e − K s ) μ − 1 2 ( ρ ′ ( I − e − K s ) K − 1 Σ ) 2 d s ) . MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaWefv3ySLgznf gDOjdaryqr1ngBPrginfgDObcv39gaiuaacqWFecFrdaWgaaWcbaGa amiDaaqabaGcdaqadaqaaiGacwgacaGG4bGaaiiCamaabmaabaGaey OeI0Yaa8qmaeaacqaHapaCdaWgaaWcbaGaam4CaaqabaGccaqGKbGa am4CaaWcbaGaamiDaaqaaiaadshacqGHRaWkcqaHepaDa0Gaey4kIi paaOGaayjkaiaawMcaaaGaayjkaiaawMcaaiabg2da9iGacwgacaGG 4bGaaiiCamaabmaabaGaeyOeI0Yaa8qmaeaacuaHbpGCgaqbaiaadw gadaahaaWcbeqaaiabgkHiTiaadUeacaWGZbaaaOGaaeiEamaaBaaa leaacaWG0baabeaakiaabsgacaWGZbGaeyOeI0Yaa8qmaeaacqaHbp GCdaWgaaWcbaGaaGimaaqabaGccqGHRaWkiiWacuGFbpGCgaqbamaa bmaabaGaamysaiabgkHiTiaadwgadaahaaWcbeqaaiabgkHiTiaadU eacaWGZbaaaaGccaGLOaGaayzkaaGae4hVd0MaeyOeI0YaaSaaaeaa caaIXaaabaGaaGOmaaaadaqadaqaaiqbeg8aYzaafaWaaeWaaeaaca WGjbGaeyOeI0IaamyzamaaCaaaleqabaGaeyOeI0Iaam4saiaadoha aaaakiaawIcacaGLPaaacaWGlbWaaWbaaSqabeaacqGHsislcaaIXa aaaOGaeu4OdmfacaGLOaGaayzkaaWaaWbaaSqabeaacaaIYaaaaOGa aeizaiaadohaaSqaaiaaicdaaeaacqaHepaDa0Gaey4kIipaaSqaai aaicdaaeaacqaHepaDa0Gaey4kIipaaOGaayjkaiaawMcaaiaac6ca aaa@9288@