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

τ log ( 1 + 3 % ) = − a ¯ 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=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaeqiXdqNaci iBaiaac+gacaGGNbWaaeWaaeaacaaIXaGaey4kaSIaaG4maiaacwca aiaawIcacaGLPaaacqGH9aqpcqGHsislceWGHbGbaebadaWgaaWcba GaeqiXdqhabeaakiabgkHiTiqbek7aIzaaryaafaWaaSbaaSqaaiab es8a0bqabaGcdaqadaqaaiaadwgadaahaaWcbeqaaiabgkHiTiaadU eadaqadaqaaiaadohacqGHsislcaWG0baacaGLOaGaayzkaaaaaOGa aeiEamaaBaaaleaacaWG0baabeaakiabgUcaRmaabmaabaGaamysai abgkHiTiaadwgadaahaaWcbeqaaiabgkHiTiaadUeadaqadaqaaiaa dohacqGHsislcaWG0baacaGLOaGaayzkaaaaaaGccaGLOaGaayzkaa GaeqiVd0gacaGLOaGaayzkaaGaey4kaSYaaSaaaeaacaaIXaaabaGa aGOmaaaacuaHYoGygaqegaqbamaaBaaaleaacqaHepaDaeqaaOGaeu yQdC1aaSbaaSqaaiaadohacqGHsislcaWG0baabeaakiqbek7aIzaa raWaaSbaaSqaaiabes8a0bqabaGccaGGUaaaaa@6FF8@