RDP 2005-12: Financial Constraints, the User Cost of Capital and Corporate Investment in Australia Equation (8)

I i , t K i , t − 1 = ( α 1 − 1 ) ( I i , t − 1 K i , t − 2 ) + ( α 2 + α 1 − 1 ) k i , t − 2 + β 0 Δ y i , t + ( β 0 + β 1 ) Δ y i , t − 1 + ( β 0 + β 1 + β 2 ) y i , t − 2 + γ 0 Δ u c i , t + ( γ 0 + γ 1 ) Δ u c i , t − 1 + ( γ 0 + γ 1 + γ 2 ) u c i , t − 2 + θ 1 ( C F i , t K i , t − 1 ) + θ 2 ( C F i , t − 1 K i , t − 2 ) + ∑ j = 1 T − 1 λ j d j + η i + ν i t MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaadaWcaa qaaiaadMeadaWgaaWcbaGaamyAaiaacYcacaWG0baabeaaaOqaaiaa dUeadaWgaaWcbaGaamyAaiaacYcacaWG0baccaGae8NeI0IaaGymaa qabaaaaOGaeyypa0ZaaeWaaeaacqaHXoqydaWgaaWcbaGaaGymaaqa baGccqWFsislcaaIXaaacaGLOaGaayzkaaWaaeWaaeaadaWcaaqaai aadMeadaWgaaWcbaGaamyAaiaacYcacaWG0bGae8NeI0IaaGymaaqa baaakeaacaWGlbWaaSbaaSqaaiaadMgacaGGSaGaamiDaiab=jHiTi aaikdaaeqaaaaaaOGaayjkaiaawMcaaiabgUcaRmaabmaabaGaeqyS de2aaSbaaSqaaiaaikdaaeqaaOGaey4kaSIaeqySde2aaSbaaSqaai aaigdaaeqaaOGae8NeI0IaaGymaaGaayjkaiaawMcaaiaadUgadaWg aaWcbaGaamyAaiaacYcacaWG0bGae8NeI0IaaGOmaaqabaGccqGHRa WkcqaHYoGydaWgaaWcbaGaaGimaaqabaGccqqHuoarcaWG5bWaaSba aSqaaiaadMgacaGGSaGaamiDaaqabaGccqGHRaWkdaqadaqaaiabek 7aInaaBaaaleaacaaIWaaabeaakiabgUcaRiabek7aInaaBaaaleaa caaIXaaabeaaaOGaayjkaiaawMcaaiabfs5aejaadMhadaWgaaWcba GaamyAaiaacYcacaWG0bGae8NeI0IaaGymaaqabaaakeaacqGHRaWk daqadaqaaiabek7aInaaBaaaleaacaaIWaaabeaakiabgUcaRiabek 7aInaaBaaaleaacaaIXaaabeaakiabgUcaRiabek7aInaaBaaaleaa caaIYaaabeaaaOGaayjkaiaawMcaaiaadMhadaWgaaWcbaGaamyAai aacYcacaWG0bGae8NeI0IaaGOmaaqabaaakeaacqGHRaWkcqaHZoWz daWgaaWcbaGaaGimaaqabaGccqqHuoarcaWG1bGaam4yamaaBaaale aacaWGPbGaaiilaiaadshaaeqaaOGaey4kaSYaaeWaaeaacqaHZoWz daWgaaWcbaGaaGimaaqabaGccqGHRaWkcqaHZoWzdaWgaaWcbaGaaG ymaaqabaaakiaawIcacaGLPaaacqqHuoarcaWG1bGaam4yamaaBaaa leaacaWGPbGaaiilaiaadshacqWFsislcaaIXaaabeaakiabgUcaRm aabmaabaGaeq4SdC2aaSbaaSqaaiaaicdaaeqaaOGaey4kaSIaeq4S dC2aaSbaaSqaaiaaigdaaeqaaOGaey4kaSIaeq4SdC2aaSbaaSqaai aaikdaaeqaaaGccaGLOaGaayzkaaGaamyDaiaadogadaWgaaWcbaGa amyAaiaacYcacaWG0bGae8NeI0IaaGOmaaqabaaakeaacqGHRaWkcq aH4oqCdaWgaaWcbaGaaGymaaqabaGcdaqadaqaamaalaaabaGaam4q aiaadAeadaWgaaWcbaGaamyAaiaacYcacaWG0baabeaaaOqaaiaadU eadaWgaaWcbaGaamyAaiaacYcacaWG0bGae8NeI0IaaGymaaqabaaa aaGccaGLOaGaayzkaaGaey4kaSIaeqiUde3aaSbaaSqaaiaaikdaae qaaOWaaeWaaeaadaWcaaqaaiaadoeacaWGgbWaaSbaaSqaaiaadMga caGGSaGaamiDaiab=jHiTiaaigdaaeqaaaGcbaGaam4samaaBaaale aacaWGPbGaaiilaiaadshacqWFsislcaaIYaaabeaaaaaakiaawIca caGLPaaacqGHRaWkdaaeWbqaaiabeU7aSnaaBaaaleaacaWGQbaabe aakiaadsgadaWgaaWcbaGaamOAaaqabaGccqGHRaWkcqaH3oaAdaWg aaWcbaGaamyAaaqabaGccqGHRaWkcqaH9oGBdaWgaaWcbaGaamyAai aadshaaeqaaaqaaiaadQgacqGH9aqpcaaIXaaabaGaamivaiab=jHi Tiaaigdaa0GaeyyeIuoaaaaa@EB20@