Notes on the Money Market and LM Curve – Eco 3202 – Fall ...
May 17, 2002 · S = closing price of Google Stock. Daily Data from Yahoo!! The data: Daily Data from August 20, 2004 – August 30, 2007 (790 observations) Equation estimated (1) St+1 = α + β St + FEt+1. which is, if you back date (go back one day ), the same as (2) St = α + β St-1 + FEt. Equation (2) is the equation that is estimated: What are our priors? ................
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