RDP 9407: Explaining Import Price Inflation: A Recent History of Second Stage Pass-Through Equation (8)

Δ p t = a 0 + i = 1 k 1 a 1 i Δ p t i + i = 0 k 1 a 2 i Δ e t i + i = 0 k 1 a 3 i Δ w t i + b 1 p t 1 + b 2 e t 1 + b 3 w t 1 + u t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaabbeaacqqHuo arcaWGWbWaaSbaaSqaaiaadshaaeqaaOGaeyypa0JaamyyamaaBaaa leaacaaIWaaabeaakiabgUcaRmaaqahabaGaamyyamaaBaaaleaaca aIXaGaamyAaaqabaaabaGaamyAaiabg2da9iaaigdaaeaacaWGRbGa eyOeI0IaaGymaaqdcqGHris5aOGaeuiLdqKaamiCamaaBaaaleaaca WG0bGaeyOeI0IaamyAaaqabaGccqGHRaWkdaaeWbqaaiaadggadaWg aaWcbaGaaGOmaiaadMgaaeqaaaqaaiaadMgacqGH9aqpcaaIWaaaba Gaam4AaiabgkHiTiaaigdaa0GaeyyeIuoakiabfs5aejaadwgadaWg aaWcbaGaamiDaiabgkHiTiaadMgaaeqaaOGaey4kaSYaaabCaeaaca WGHbWaaSbaaSqaaiaaiodacaWGPbaabeaaaeaacaWGPbGaeyypa0Ja aGimaaqaaiaadUgacqGHsislcaaIXaaaniabggHiLdGccqqHuoarca WG3bWaaSbaaSqaaiaadshacqGHsislcaWGPbaabeaaaOqaaiabgUca RiaadkgadaWgaaWcbaGaaGymaaqabaGccaWGWbWaaSbaaSqaaiaads hacqGHsislcaaIXaaabeaakiabgUcaRiaadkgadaWgaaWcbaGaaGOm aaqabaGccaWGLbWaaSbaaSqaaiaadshacqGHsislcaaIXaaabeaaki abgUcaRiaadkgadaWgaaWcbaGaaG4maaqabaGccaWG3bWaaSbaaSqa aiaadshacqGHsislcaaIXaaabeaakiabgUcaRiaadwhadaWgaaWcba GaamiDaaqabaaaaaa@8493@