First-Order Difference Equations: AR(1) Explained Simply
3:48
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First-Order Difference Equations: AR(1) Explained Simply
Welcome to this essential deep dive into the First-Order Linear Difference Equation, $y_t = \phi y_{t-1} + \epsilon_t$. This fundamental equation is the backbone of the AR(1) Model, a critical concept in Econometrics and Time Series Analysis used globally by financial analysts and central banks. We break down the anatomy of the equation: $y_t ...
2 days ago
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