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lines changed Original file line number Diff line number Diff line change @@ -237,7 +237,7 @@ where $P_{1t}$ solves the matrix Riccati difference equation
237237P_{1t} =
238238\Pi_{1t} -
239239(\beta B_1' {\mathcal D}_1(P_{1t+1}) \Lambda_{1t} + \Gamma_{1t})' (Q_1 + \beta B_1' {\mathcal D}_1( P_{1t+1}) B_1)^{-1}
240- (\beta B_1' {\mathcal D}_1(P_{1t+1}) \Lambda_{1t} + \Gamma_{1t}) +
240+ (\beta B_1' {\mathcal D}_1(P_{1t+1}) \Lambda_{1t} + \Gamma_{1t}) + \\
241241\beta \Lambda_{1t}' {\mathcal D}_1(P_{1t+1}) \Lambda_{1t}
242242```
243243
@@ -256,8 +256,8 @@ where $P_{2t}$ solves
256256:label: rmp-orig-6
257257
258258P_{2t} =
259- \Pi_{2t} - (\beta B_2' {\mathcal D}_2 ( P_{2t+1}) \Lambda_{2t} + \Gamma_{2t})' (Q_2 + \beta B_2' {\mathcal D}_2 ( P_{2t+1}) B_2)^{-1}
260- (\beta B_2' {\mathcal D}_2 ( P_{2t+1}) \Lambda_{2t} + \Gamma_{2t}) + \beta \Lambda_{2t}' {\mathcal D}_2 ( P_{2t+1}) \Lambda_{2t}
259+ \Pi_{2t} - (\beta B_2' {\mathcal D}_2 ( P_{2t+1}) \Lambda_{2t} + \Gamma_{2t})' (Q_2 + \beta B_2' {\mathcal D}_2 ( P_{2t+1}) B_2)^{-1}(\beta B_2' {\mathcal D}_2 ( P_{2t+1}) \Lambda_{2t} + \Gamma_{2t}) + \\
260+ \beta \Lambda_{2t}' {\mathcal D}_2 ( P_{2t+1}) \Lambda_{2t}
261261```
262262
263263Here in all cases $t = t_0, \ldots, t_1 - 1$ and the terminal conditions are $P_ {it_1} = 0$.
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