Hi: I can obtain a soluton to the following difference equation heuristically but I was wondering if there is a procedure. The equation is:
$y_{t} = \frac{x_{t}}{1-\rho L} + \epsilon_{t}$ where $L$ denotes the backshift operator so that $L(x_{t}) = x_{t-1}$.
A ( or the , I'm not sure ) solution is $y_{t} = \sum_{i = 0}^{\infty} \rho^{i}X_{t-i} + \epsilon_{t}$
but I expected there to be a general procedure-formula. I looked in Goldberger's text and couldn't find it there either. Any reference is appreciated also. Thanks.