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Intermediate Proof

Derivation of the Infinite MA Representation ($Z_t = \sum \psi_j a_{t-j}$) for a Stationary AR(1) Process

Confusing the AR(p) coefficients (which describe dependence on past *values*) with the MA(\infty) coefficients (which describe dependence on past *shocks*). The stationarity condition ϕ<1 |\phi| < 1 is crucial for this infinite representation to converge.
Institutional Reference: Time Series Analysis
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