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HELP Probability of State change!!!
Hey, Could any one please tell me how to derive the following equation.The paper says the folllowing, the inference of the predominant regime is based only on calculated state probabilities. In the ma jority of cases a two-state, first-order Markov-switching process for st is considered with the following transition probabilities [6]:In the above equation is the unconstrained parameter.Any help would be really appreciated.