RDP 2011-06: Does Equity Mispricing Influence Household and Firm Decisions? Equation (18)

[ I r 1 a ˜ 12 0 , 22 a 21 0 , 22 1 ] [ Δ y 21 t Δ y 22 t ] = [ [ A ˜ 21 0 ] 1 [ A 21 0 ] 2 ] Δ y 1 t [ [ A ˜ 22 2 ] 1 [ A 22 2 ] 2 ] [ Δ y 21 t 1 Δ y 22 t 1 ] [ [ A ˜ 21 2 ] 1 [ A 21 2 ] 2 ] Δ y 1 t 1 [ [ α ˜ 2 * ] 1 [ α 2 * ] 2 ] ξ t 1 + [ u t f , T ε t b , T ] MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaadaWada qaauaabeqaciaaaeaaieqacaWFjbWaaSbaaSqaaiaadkhacqGHsisl caaIXaaabeaaaOqaaiqadggagaacamaaDaaaleaacaaIXaGaaGOmaa qaaiaaicdacaGGSaGaaGOmaiaaikdaaaaakeaacaWGHbWaa0baaSqa aiaaikdacaaIXaaabaGaaGimaiaacYcacaaIYaGaaGOmaaaaaOqaai aaigdaaaaacaGLBbGaayzxaaWaamWaaeaafaqabeGabaaabaGaeuiL dqKaa8xEamaaBaaaleaacaaIYaGaaGymaiaadshaaeqaaaGcbaGaeu iLdqKaa8xEamaaBaaaleaacaaIYaGaaGOmaiaadshaaeqaaaaaaOGa ay5waiaaw2faaiabg2da9iabgkHiTmaadmaabaqbaeqabiqaaaqaam aadmaabaGabmyqayaaiaWaa0baaSqaaiaaikdacaaIXaaabaGaaGim aaaaaOGaay5waiaaw2faamaaBaaaleaacaaIXaaabeaaaOqaamaadm aabaGaamyqamaaDaaaleaacaaIYaGaaGymaaqaaiaaicdaaaaakiaa wUfacaGLDbaadaWgaaWcbaGaaGOmaaqabaaaaaGccaGLBbGaayzxaa GaeuiLdqKaa8xEamaaBaaaleaacaaIXaGaamiDaaqabaGccqGHsisl daWadaqaauaabeqaceaaaeaadaWadaqaaiqadgeagaacamaaDaaale aacaaIYaGaaGOmaaqaaiaaikdaaaaakiaawUfacaGLDbaadaWgaaWc baGaaGymaaqabaaakeaadaWadaqaaiaadgeadaqhaaWcbaGaaGOmai aaikdaaeaacaaIYaaaaaGccaGLBbGaayzxaaWaaSbaaSqaaiaaikda aeqaaaaaaOGaay5waiaaw2faamaadmaabaqbaeqabiqaaaqaaiabfs 5aejaa=LhadaWgaaWcbaGaaGOmaiaaigdacaWG0bGaeyOeI0IaaGym aaqabaaakeaacqqHuoarcaWF5bWaaSbaaSqaaiaaikdacaaIYaGaam iDaiabgkHiTiaaigdaaeqaaaaaaOGaay5waiaaw2faaaqaaiabgkHi TmaadmaabaqbaeqabiqaaaqaamaadmaabaGabmyqayaaiaWaa0baaS qaaiaaikdacaaIXaaabaGaaGOmaaaaaOGaay5waiaaw2faamaaBaaa leaacaaIXaaabeaaaOqaamaadmaabaGaamyqamaaDaaaleaacaaIYa GaaGymaaqaaiaaikdaaaaakiaawUfacaGLDbaadaWgaaWcbaGaaGOm aaqabaaaaaGccaGLBbGaayzxaaGaeuiLdqKaa8xEamaaBaaaleaaca aIXaGaamiDaiabgkHiTiaaigdaaeqaaOGaeyOeI0YaamWaaeaafaqa beGabaaabaWaamWaaeaacuaHXoqygaacamaaDaaaleaacaaIYaaaba GaaiOkaaaaaOGaay5waiaaw2faamaaBaaaleaacaaIXaaabeaaaOqa amaadmaabaGaeqySde2aa0baaSqaaiaaikdaaeaacaGGQaaaaaGcca GLBbGaayzxaaWaaSbaaSqaaiaaikdaaeqaaaaaaOGaay5waiaaw2fa aiabe67a4naaBaaaleaacaWG0bGaeyOeI0IaaGymaaqabaGccqGHRa WkdaWadaqaauaabeqaceaaaeaacaWG1bWaa0baaSqaaiaadshaaeaa caWGMbGaaiilaiaadsfaaaaakeaacqaH1oqzdaqhaaWcbaGaamiDaa qaaiaadkgacaGGSaGaamivaaaaaaaakiaawUfacaGLDbaaaaaa@BC0E@