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2. Say you t an AR(1) model for ination rate and year, for the years from 1950 to the present. Let Y: be the ination
2. Say you t an AR(1) model for ination rate and year, for the years from 1950 to the present. Let Y: be the ination rate at year t. Thus if the ination rate was 1.7% in the year 2015 we would have 1/2015 = 1.7. The model you get is K_5=-5(Y;15)+63
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
