RBA Annual Conference – 2018 Equation

L( Y; θ ^ )=− ∑ t=1 T ( 1 2 [ Y t −Λ F t ]′ R −1 [ Y t −Λ F t ] )− T 2 log| R | − ∑ t=2 T ( 1 2 [ F t −Φ F t−1 ]′ Q −1 [ F t −Φ F t−1 ] )− T−1 2 log| Q | − 1 2 [ F 1 − F 0 ]′ P 0 −1 [ F 1 − F 0 ]− 1 2 log| P 0 |− T( p+r ) 2 log( 2π )