RDP 2018-02: Affine Endeavour: Estimating a Joint Model of the Nominal and Real Term Structures of Interest Rates in Australia Equation

A n =− ρ 0 + A n−1 + B n−1 ′ ( μ−∑ λ 0 )+ 1 2 B n−1 ′ ∑ ∑ ′ B n−1 B n ′ =− ρ 1 ′ + B n−1 ′ ( θ−∑ λ 1 ) MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaGabeaacaWGbbWaaSbaaSqaaiaad6gaaeqaaOGaeyypa0JaeyOeI0IaeqyWdi3aaSbaaSqaaiaaicdaaeqaaOGaey4kaSIaamyqamaaBaaaleaacaWGUbGaeyOeI0IaaGymaaqabaGccqGHRaWkcaWHcbWaa0baaSqaaiaad6gacqGHsislcaaIXaaabaaccaGae8NmGikaaOWaaeWaaeaacqaH8oqBcqGHsislcqGHris5cqaH7oaBdaWgaaWcbaGaaGimaaqabaaakiaawIcacaGLPaaacqGHRaWkdaWcaaqaaiaaigdaaeaacaaIYaaaaiaahkeadaqhaaWcbaGaamOBaiabgkHiTiaaigdaaeaacqWFYaIOaaGccqGHris5cqGHris5daahaaWcbeqaaiab=jdiIcaakiaahkeadaWgaaWcbaGaamOBaiabgkHiTiaaigdaaeqaaaGcbaGaaCOqamaaDaaaleaacaWGUbaabaGae8NmGikaaOGaeyypa0JaeyOeI0IaeqyWdi3aa0baaSqaaiaaigdaaeaacqWFYaIOaaGccqGHRaWkcaWHcbWaa0baaSqaaiaad6gacqGHsislcaaIXaaabaGae8NmGikaaOWaaeWaaeaacqaH4oqCcqGHsislcqGHris5cqaH7oaBdaWgaaWcbaGaaGymaaqabaaakiaawIcacaGLPaaaaaaa@7789@