RDP 2016-02: Disagreement about Inflation Expectations Equation (7)

σ_{t, t + 4} = α + γ_{1} {\hat{π}}_{t} + γ_{2} | {\hat{π}}_{t} - {\hat{π}}_{a v g} | + \sum_{k = 1}^{4} σ_{t - k, t - k + 4} + ε_{t}