RDP 2013-09: Terms of Trade Shocks and Incomplete Information Equation (2)

a t = ρ a a t 1 + ε t a ; ε t a N ( 0 , σ a 2 ) MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamyyamaaBaaaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWGHbaabeaakiaadggadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeqyTdu2aa0baaSqaaiaadshaaeaacaWGHbaaaOGaai4oaiabew7aLjablYJi6iaad6eadaqadaqaaiaaicdacaGGSaGaeq4Wdm3aa0baaSqaaiaadggaaeaacaaIYaaaaaGccaGLOaGaayzkaaaaaa@4F38@