RDP 2013-09: Terms of Trade Shocks and Incomplete Information Equation (20)

z t = ρ z z t 1 + ε t z ; ε t z N ( 0 , σ z 2 ) MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGcbaGaamOEamaaBaaaleaacaWG0baabeaakiabg2da9iabeg8aYnaaBaaaleaacaWG6baabeaakiaadQhadaWgaaWcbaGaamiDaiabgkHiTiaaigdaaeqaaOGaey4kaSIaeqyTdu2aa0baaSqaaiaadshaaeaacaWG6baaaOGaai4oaiabew7aLnaaDaaaleaacaWG0baabaGaamOEaaaakiablYJi6iaad6eadaqadaqaaiaaicdacaGGSaGaeq4Wdm3aa0baaSqaaiaadQhaaeaacaaIYaaaaaGccaGLOaGaayzkaaaaaa@51E4@