$$\text { Consider the standard AR(1) } Y _ { t } = \beta _ { 0 } + \beta _ { 1 } Y _ { t - 1 } + u _ { t } \text {, where the usual assumptions hold. }$$

Question

Examlex · Accepted Answer

The Answer of $$\text { Consider the standard AR(1) } Y _ { t } = \beta _ { 0 } + \beta _ { 1 } Y _ { t - 1 } + u _ { t } \text {, where the usual assumptions hold. }$$

(A) Show That $y _ { t } = \beta _ { 1 } y _ { t - 1 } + u _ { t }$

Definitions:

(A) Show That yt=β1yt−1+uty _ { t } = \beta _ { 1 } y _ { t - 1 } + u _ { t }yt​=β1​yt−1​+ut​

Definitions:

(A) Show That $y _ { t } = \beta _ { 1 } y _ { t - 1 } + u _ { t }$