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Econometrics is the application of statistical methods to economic data for various purposes such as of testing hypotheses, infering causal relationships and forecasting future trends. Only use this tag for questions relating to the theoretical aspect of an econometric technique.
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Covariance stationary solution to the equation
Is there a covariance stationary solution to the equation?
$X_t = 4 \varepsilon_{t-1} + \varepsilon_t, \quad \text{where } \{ \varepsilon_t \} \in WN(0, \sigma^2), t \in \mathbb{Z}$.
Unfortunately I c …