RDP 2013-11: Issues in Estimating New-Keynesian Phillips Curves in the Presence of Unknown Structural Change Equation (A9)

π t + 1 = a 1 π t + a 2 ( ϕ 5 x t + ϕ 4 π t + ϕ 6 r t + ν 2 t + 1 ) + a 3 r t + η t + 1 = b 1 π t + b 2 x t + b 3 r t + ξ t + 1 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaabbeaacqaHap aCdaWgaaWcbaGaamiDaiabgUcaRiaaigdaaeqaaOGaeyypa0Jaamyy amaaBaaaleaacaaIXaaabeaakiabec8aWnaaBaaaleaacaWG0baabe aakiabgUcaRiaadggadaWgaaWcbaGaaGOmaaqabaGcdaqadaqaaiab ew9aMnaaBaaaleaacaaI1aaabeaakiaadIhadaWgaaWcbaGaamiDaa qabaGccqGHRaWkcqaHvpGzdaWgaaWcbaGaaGinaaqabaGccqaHapaC daWgaaWcbaGaamiDaaqabaGccqGHRaWkcqaHvpGzdaWgaaWcbaGaaG OnaaqabaGccaWGYbWaaSbaaSqaaiaadshaaeqaaOGaey4kaSIaamOD amaaBaaaleaacaaIYaGaamiDaiabgUcaRiaaigdaaeqaaaGccaGLOa GaayzkaaGaey4kaSIaamyyamaaBaaaleaacaaIZaaabeaakiaadkha daWgaaWcbaGaamiDaaqabaGccqGHRaWkcqaH3oaAdaWgaaWcbaGaam iDaiabgUcaRiaaigdaaeqaaaGcbaGaeyypa0JaamOyamaaBaaaleaa caaIXaaabeaakiabec8aWnaaBaaaleaacaWG0baabeaakiabgUcaRi aadkgadaWgaaWcbaGaaGOmaaqabaGccaWG4bWaaSbaaSqaaiaadsha aeqaaOGaey4kaSIaamOyamaaBaaaleaacaaIZaaabeaakiaadkhada WgaaWcbaGaamiDaaqabaGccqGHRaWkcqaH+oaEdaWgaaWcbaGaamiD aiabgUcaRiaaigdaaeqaaaaaaa@7A68@