Can somebody better explain this than the book does?

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SUMMARY

The discussion centers on the GARCH(1,1) processes, specifically addressing confusion regarding the expression "E[ln(β+αz_t^2)]" and the terminology used in the context of natural logarithms. The participant questions the appropriateness of the phrase "holds trivially" when β > 0, suggesting a misunderstanding of the language typically used in statistical contexts. Additionally, the conversation highlights the restrictions on accessing academic papers through JSTOR, emphasizing the legal implications of sharing copyrighted material.

PREREQUISITES
  • Understanding of GARCH(1,1) processes in time series analysis
  • Familiarity with statistical concepts such as expected value and natural logarithms
  • Knowledge of probability theory
  • Awareness of copyright laws regarding academic publications
NEXT STEPS
  • Research the derivation and applications of GARCH(1,1) models in financial time series
  • Study the properties of expected values in statistical distributions
  • Explore the implications of logarithmic transformations in statistical analysis
  • Review copyright regulations related to academic resources and sharing practices
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Statisticians, financial analysts, students of econometrics, and anyone involved in time series modeling and analysis.

O'Fearraigh
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It's about GARCH(1,1) processes (mainly it's all statistics and probability).
Anyway, there is the section of a book (link below) that is confusing me:
Where does "E[ln⁡(β+αz_t^2)]" come from (on page 319, the "second" page)? My other question is why does it say that "ln⁡(β+αz_t^2) holds trivially if β > 0"? Maybe it's me, but I don't think it really make sense to say that a natural log "holds"... Isn't that wording generally reserved for logical statements?

Book:

http://www.jstor.org/stable/3532198?seq=1
 
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I do not have access the jstor repository. So would you mind to send a copy of that paper here ron_michael70@yahoo.com?

Thanks,
 
ronm said:
I do not have access the jstor repository. So would you mind to send a copy of that paper here ron_michael70@yahoo.com?

Thanks,
Perhaps you do not know that papers on jstor are copywrited and access is restricted to those people who have payed to for the privilege or belong to organizations that have payed. In other words, what you are asking O'Fearraigh to do is illegal.
 

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