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Bivariate

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... respectively. [[h.sup.pi][.sub.t] is the estimated conditional deviation of inflation in period t. All three bivariate and .06 for the bivariate model with ps. Combined with the [[sigma].sub.10], these numbers lead to the estimated [h.sup.[pi]] is .07 for the univariate model, .06 for the bivariate model with rw, .08 for the bivariate model with rp, in period t that comes from the bivariate ARCH model described in Table 4 and is shown in Figure 6. Recall that on the use of the bivariate ARCH models with [pi] and rw, [pi] and rp, and [pi] and ps, respectively. The purpose of ...



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